Chancellor Rachel Reeves has been cautioned that the UK’s current fiscal path is veering down a concerning path, and she should make near-term changes in the face of her first Budget next month.
The Organisation for Economic Co-operation and Development (OECD) said in its latest report, that the current fiscal rules "may lead to short-termism and to a trend deterioration of public finance". It also warned the chancellor that the "current rules provide clear guidance about the medium-term plan for returning to debt sustainability. But the rolling target window leads to sub-optimal fiscal policy and works against long-horizon public investment". This comes a week after the Office for Budget Responsibility's report warned that current debt projections are on an "unsustainable pa...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes