History shows us that fiscal discipline will mean a faster return to growth
Back in March, Prime Minister Rishi Sunak – then Chancellor – set out sensible plans for modest spending cuts and tax rises to balance the public sector books over the medium-term.
After the massive borrowing to fund emergency pandemic policies during 2020 and 2021, a return to fiscal discipline made sense. It still does.
If the UK had stayed that fiscal course, it would now be pursuing gradual austerity by choice. Instead, it is now being forced into a strict programme of belt tightening by markets whose trust in the UK has been shaken.
In August, I warned in this column that some Conservatives seemed to be confusing Reaganism with Thatcherism.