Much has been written about Rachel Reeves’s big problem ahead of next week’s Budget. Should she spend money or make cuts to reduce Britain’s national debt?
New figures today from the Office for National Statistics (ONS) show public-sector borrowing between April and September 2024 was £1.2bn more than it was for the same period in 2023 and £6.7bn higher than the independent fiscal watchdog – the Office for Budget Responsibility (OBR) – had forecast it would be, so the latter might sound more sensible.
However, there are thoughtful ways to challenge this narrative. Saving money now doesn’t necessarily equal prosperity later.
In this week’s Home Front, let’s look at why the Chancellor should spend money by boosting benefits if she wants to boost Britain’s economy in the long term.
Benefits are …