Ian Mulheirn
Ian Mulheirn is Director of the Social Market Foundation
So now it seems everyone is calling for a fiscal growth strategy. Conservative backbenchers are pushing tax breaks for entrepreneurs; Ed Balls wants a reversal of last year’s VAT cut; and the Lib Dems are agitating for the acceleration of the £10,000 personal allowance manifesto pledge, in pursuit of growth.
It’s welcome to see people across the political spectrum starting to take the growth agenda more seriously. But it’s not for nothing that the Chancellor points out the perils of a loss of deficit-cutting credibility if he goes borrowing more. You can make a good case for a discretionary fiscal stimulus, but you must also acknowledge that the risks involved for UK government debt are unknowable and the consequences catastrophic.
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