Chancellor expected to announce tax rises and spending cuts in attempt to reverse effects of Truss mini-budget
Much commentary on the autumn statement, from the government and in the media, has focused on the need to fill a “black hole” in the nation’s finances. But, as James Meadway, head of the Progressive Economy Forum, explains in an article for the Guardian, the “black hole” is not a concrete truth, but a notional construct based on economic assessements that are uncertain and fiscal choices that are questionable. He says:
Here is an extract.
The “fiscal black hole” is not a hard economic fact. It’s the result of uncertain forecasts and the government’s own target for the level of debt in five years’ time. This isn’t the same as looking at (for instance) real wages – currently falling rapidly – or rising unemployment today. It would be a profound error to use this ghostly “fiscal hole” as an excuse to drag the country back into the economic doom-loop of austerity.