Reports that the government may relax its fiscal rules in favour of public spending hikes – most likely funded through additional borrowing – “risk undermining the work done over recent years to rein in the country’s budget deficit“, says the IEA’s  editorial and research fellow Professor Len Shackleton.

Quoted in City AM, Len said “treasury rules aim to ensure a significant return for public expenditure and shouldn’t be relaxed when the benefits are uncertain and the tax burden is already at a near 50-year high.”

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