Or, put bluntly, to borrow loads more money and bump up the national debt, already running at about a 60-year high. While no one expects the temperamentally cautious Rachel Reeves to “do a Truss” and launch a shock Budget with vastly bigger borrowing targets, there are legitimate concerns about the impact on interest rates and, thus, mortgages and business confidence. Reeves is under enormous pressure to spend more on public services and invest to improve growth. It’s all very tight, but she does have options...
Why can’t we borrow what we need?
We can, and governments have done so many times, for good and bad reasons. The problem is that it can also push inflation and interest rates higher, thus making economic matters worse. The government now, for example, spends more on paying interest on its debts (about £100bn a year) than on defence (£53bn) or schools (£92bn). Because of the cost of rescuing banks in the global financial crisis of 2008, the ongoing damage inflicted by Brexit, the debts run up by pandemic support measures, and similar measures in the recent energy crisis, the national debt has ballooned to about 100 per cent of national income. Now interest rates are more normal, it’s becoming a burden.
What are the fiscal rules?
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Denne historien er fra October 10, 2024-utgaven av The Independent.
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Tuchel left with big calls to make after Carsley refresh
No pressure, Thomas. Lee Carsley hands over to Thomas Tuchel promising to give England’s next manager a comprehensive debrief on the three autumn camps but perhaps also elevating expectations. Not so much with the results – promotion in the Nations League was anticipated for a team ranked fourth in the world and who reached the final of Euro 2024 – as with his assessment of England’s prospects for the time covered by Tuchel’s 18-month deal.
Wiegman calls up uncapped trio for injury-hit Lionesses
England manager Sarina Wiegman is confident Laura Blindkilde-Brown and Ruby Mace can both make the most of their first senior call-ups to an injury-hit squad.
Wales promoted as Cullen double freezes out Iceland
Wales won Nations League promotion as Liam Cullen’s first two international goals helped them to a 4-1 victory over Iceland.
Retail bosses gifted excuse for when things go wrong
It’s not just British farmers who are hacked off by the latest Budget some of the biggest names in retail have now joined forces to send one of those angry, multi-signature letters to the chancellor, scolding her for the imminent tax hikes coming their way.
Jaguar pounces on new logo
Car giant Jaguar has unveiled a new logo and a rebranded range of electric cars alongside marketing slogans such as “delete ordinary,” “live vivid,” and “copy nothing.”
OF UNSOUND MIND
A disquieting mood permeates the BBC's 'The Listeners', the complex story of a teacher whose life unravels after she starts hearing a ceaseless, mysterious hum, writes Nick Hilton
It's grit over gloss in photo show's eye on the Eighties
Protest, poverty and privilege - The 80s: Photographing Britain at Tate Britain offers an exciting, if partial, view of a decade that remains highly polarising, writes Mark Hudson
Publicly-owned rail may not get us back on right track
Nationalisation is often touted as a golden ticket to a better train service. Simon Calder is less optimistic it will work
CAFFEINE FIX
Why does a squirt of syrup in your coffee at Christmas burn such a massive hole in your wallet? Olivia Petter finds out.
Longing and loss: our era of British cinematic elegance
It is four decades since A Room with a View’ made Merchant Ivory a household name. Sarah Sands recalls a world in which her brother Kit and her then husband Julian were central
