Skip to main content

Monetary tightening now, fiscal tightening later

With the planned fiscal squeeze coming after 2024/25, the Autumn Statement was not just good politics, but good economics too.  Even so, the UK's fiscal consolidation stands out in comparison to the net fiscal loosenings elsewhere. This fiscal prudence reflects the Chancellor’s attempts to restore the government's fiscal credibility. But it is also a matter of choice based on the Chancellor’s new self-imposed fiscal rules and his chosen headroom against them.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services

Get access