What’s needed to fix UK public finances?
We’re sceptics when it comes to Kwasi Kwarteng's tax cuts and their impact on UK economic growth. In fact, we think fiscal policy will need to be tightened to put public finances on a more stable path.
The UK's new Chancellor thinks tax cuts and regulatory reform will lead to faster real economic growth, which in turn will keep the public finances on a sustainable path. We’re not convinced – and instead think a fiscal squeeze will need to come.
Download our new report on the UK economy to find out why we think the government will need to take steps to restore confidence in public finances and what that means for the UK's growth outlook.
The Chancellor’s view is that tax cuts and regulatory reform will lead to faster real economic growth, which in turn will keep the public finances on a sustainable path. But we’re not convinced this will happen.