Fiscal reset

News


Inflation latest

Inflation up to 3.1% - the highest rate since 2012. 

Read more
Top UK universities

Top 40 UK universities for Economics.

Read more
Model agencies collude to fix rates

Regulators find leading model agencies guilty of price fixing.

Read more

Fiscal reset image

Fiscal reset

UK Chancellor, Phillip Hammond, gave a clear indication that the straightjacket on public finances, central to the Osborne-Cameron post financial crisis strategy, is to be loosened as the UK prepares for a ‘rocky road’ in the run up to Brexit. This means abandoning George Osborne’s target of getting public finances to balance by 2020. This means that borrowing to fund infrastructure projects and new homes will not be subject to previous fiscal constraints.

Like many, the Chancellor is not convinced that looser monetary policy alone will be sufficient to stimulate the UK economy, nor that the private sector can generate the growth and jobs required to steer a steady course in the run-up to Brexit itself. In short, the UK government will have to take some responsibility in what is being called a soft-Keynesian approach. The Communities Secretary, Sajid Javid, began to set out the government's stall by setting a target of building 1 million new homes by 2020.  Mr Hammond will reveal more in his first major financial statement, the Autumn Statement, on November 23rd.

The immediate impact of Mr Hammond’s speech, following on from Mrs May’s comments on the timing of Brexit, was on sterling, which fell to a 3-year low against the euro. The prime minister has earlier clarified that she would trigger Article 50 by the end of March 2017, with the UK likely to leave the EU by the middle of 2019.

 


First rate rise in 10 years

Bank of England raises UK base rate to 0.50%.

Read more
Brexit breakthrough

Agreement on Irish border opens door to trade talks.

Read more
Customs unions

Costs and benefits of customs unions.

Read more
New materials

Multiple choice papers for Paper Three.

Read more
Alternative finance

Report on the growth of alternative finance.

Read more
Savings ratio

Savings ratio falls to lowest level on record.

Read more
Tax avoidance

Double Irish - and a Dutch Sandwich more..

The OECD presents its final package for reform of international tax rules..more

OECD - reducing income inequality will boost growth..more