IEA - The Chancellor is right to emphasise the importance of fiscal responsibility
Kate Andrews, Associate Director at the Institute of Economic Affairs responded to the Chancellor’s plea to keep national debt falling every year
“The Chancellor has dished out a fair and sensible warning to leadership candidates. Slashing tax and spending increases must go hand-in-hand with cuts in other areas and a radical pro-growth agenda – otherwise they are not fiscally responsible policies.”
“Increasing the national debt is not the way to achieve a healthy economy long-term; indeed more should be done so that future generations are not saddled with a mountain of debt.
“That said, we are long overdue for a return to a more free market agenda, that has a proven track record of lowering the cost of goods and raising living standards. With the UK tax burden at a near-fifty year high, putting more money back in people’s wallets should be a top priority, but it shouldn’t mean abandoning fiscal responsibility along the way.
“Money borrowed and spent eventually has to be paid back, and it would be deeply unfair to make tomorrow’s taxpayers pick up today’s bill.”
Notes to editors:
For related IEA research on taxation and economic growth please click here.
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 and seeks to provide analysis in order to improve the public understanding of economics.
The IEA is a registered educational charity and independent of all political parties.
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