IEA - Fiscal rules are no more than vague hopes for this government
IEA reacts to the Autumn Statement 2016
Commenting on the chancellor’s Autumn Statement, Mark Littlewood, Director General at the Institute of Economic Affairs said:
“This was a thin and fiddly statement, so it’s a relief that the Chancellor has found one area of government activity to cut in abolishing the Autumn Statement. Sadly though, he has abandoned any attempt to balance the books. Over the next five years the Government will be adding over £233 billion to the national debt, as much as the entire annual welfare bill. Fiscal rules to this government sadly seem to be no more than vague aspirations which are abandoned with impunity.
“On the upside, the Chancellor does seem to realise, however, that there’s no need to implement policy for the sake of it. A boring budget statement is better than a gimmicky one.”
“Outlawing letting fees will only drive up the cost of renting. Agencies will inevitably foist these fees onto landlords, who will in turn be forced to put up rents.
“Instead of making artificial changes that skirt around the problems of the housing crisis, the government should be improving affordability by allowing the construction of more houses. Instead of pumping public money we don’t have into housebuilding, the government should liberalise planning regulations to free up land for building.”
“Protecting the triple-lock pensions guarantee is misguided and unsustainable. With an ageing population, this mechanism locks in increased spending on pensioners relative to a shrinking working population who unfairly bear the burden. If it is decided that the state pension should increase, it should be either pegged to price level increases or earnings growth, to ensure it is linked to the health of the economy. Phillip Hammond paid lip service to the UK’s demographic challenges. He would do well to seriously consider an end to arbitrary ring-fencing of budgets; a thorough and strategic examination of what government should be doing is badly needed.”
Notes to editors:
For media enquiries please contact Stephanie Lis, Director of Communications: email@example.com or 0207 799 8909 or 07766 221 268
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems.
The IEA is a registered educational charity and independent of all political parties.
Latest News from
Adam Smith Inst - Half marks for tariff reductions14/03/2019 11:35:00
While the government's 'modest liberalisation of tariffs' (in their words) is a step in the right direction for consumers and producers, but in bowing to the agricultural lobby the government would penalise Brits that dare to buy food from overseas.
JRF - Government not tackling injustice of poverty in the UK14/03/2019 10:35:00
The Joseph Rowntree Foundation (JRF) has responded to the Chancellor’s Spring Statement in which no action was taken to end the benefits freeze despite it sweeping many families deeper into poverty.
IEA Responds to Spring Statement 201914/03/2019 09:35:00
IEA spokespeople comment on Spring Statement public policy
NIESR Monthly GDP Tracker: UK economic growth continues at slow pace13/03/2019 14:25:00
The UK economy is on course to grow at the lacklustre pace of 0.2% in the first quarter of 2019.
JRF - Chancellor should use his chance to address root causes of period poverty12/03/2019 13:35:00
Commenting on news that the Chancellor is expected to use Wednesday’s Spring Statement to make sanitary products available for free in schools, JRF is urging him to take the opportunity to address the underlying causes of poverty.
IFG - Questions over Home Office role in immigration after Brexit12/03/2019 12:35:00
The Home Office may not be the right department to manage immigration policy after Brexit, argues a new report by the Institute for Government.
King's Fund - British public’s satisfaction with the NHS at lowest level in over a decade12/03/2019 11:35:00
Public satisfaction with the NHS has fallen to its lowest level since 2007, according to analysis of the 2018 British Social Attitudes (BSA) survey published last week by The King’s Fund and the Nuffield Trust.
Public being misled about the clampdown on ‘junk food’, says new IEA briefing12/03/2019 10:35:00
IEA publishes new briefing on 'junk food'
JRF - End the benefits freeze this year to boost the incomes of working families12/03/2019 09:35:00
The Treasury has been urged to boost the living standards of low-income working families by ending the freeze on benefits and tax credits and increase them in line with inflation at the Spring Statement