I think there is a decent argument that the best response from the CX to higher gilt yields at the Spring Statement would be to not respond.
Publish the new forecasts and promise to respond at the Autumn budget.
Shouldn’t get into the habit of multiple in-year changes in fiscal policy.
Publish the new forecasts and promise to respond at the Autumn budget.
Shouldn’t get into the habit of multiple in-year changes in fiscal policy.
Comments
The usual response over the last decade has just been to change the rules. That is also silly.
Say you are not currently on track to meet them but don’t face a funding crisis and will respond, in due course, at the next full budget.
Especially given this is likely to be associated with higher interest rates (or awful growth forecast?), and would give people a reason to pin it on govt, fairly or not
I think it might cut deeper than just the press - assuming there has to be some kind of accompanying economic pain.
I’m in the tightening-a-bit-via-tax camp, but I’m probably too optimistic about how palatable tax rises would be (and there’s the manifesto)