The Chancellor, Rishi Sunak, was right to say today that now is not the time to tighten fiscal policy. But given the OBR’s downbeat forecasts, the biggest danger is that the government is lured into withdrawing its support too much too soon. That could lead to a slower economic recovery, cause greater long-term scarring and thus magnify the scale of future fiscal challenges.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.