As the countdown begins to his inaugural financial statement in 12 weeks, Chancellor John Healey is exploring methods to increase public spending without violating the Treasury’s stringent fiscal regulations. A growing number of economists are encouraging the new Chancellor to take decisive action and exploit the flexibility now available to him.
Competing Strategies for Investment
While some advisors suggest Healey should utilize the recently adjusted fiscal rules to borrow directly from markets, others argue for a more creative strategy regarding government financing. The former defence secretary, now settled into Downing Street, faces the immediate task of managing the government’s day-to-day expenditures while considering these long-term structural changes.
Source: The Guardian