It’s not going to work. Our new Chancellor’s Budget was received calmly by the financial markets, but that’s because they know that the Government will be constrained by two things.
One is that there have to be deep cuts in public spending in the next couple of years, and I’m afraid almost certainly increases in taxes too. The other is that there have to be higher interest rates, maybe much higher, and that will start this week.
The various think-tanks have crawled over the figures and concluded they don’t add up.
The independent Institute for Fiscal Studies says there will be a ‘brutal’
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