The Chancellor has dismissed suggestions that high government spending on debt interest reflects progressive economic policy, insisting instead that the UK must focus on sustainable growth to address rising costs for businesses and consumers. In a statement to MPs, he argued that past decisions—including centralization of political power, privatization of economic enablers, and deindustrialization—have weakened the economy’s foundations, leaving it vulnerable to market instability. The government now aims to reverse these trends by reducing burdens on businesses, such as energy costs and regulation, while emphasizing long-term economic expansion as the solution to both inflation and stagnation. Critics, however, have already highlighted systemic failures in accountability and competitiveness as key obstacles to recovery.
Chancellor says there’s ‘nothing progressive’ about government spending £1 in every ten on debt interestChancellor to argue UK economy can ‘turn corner’ despite bond market turmoilHealey says Andy Burnham set out in his statement to MPs last week what he thought had gone wrongThe fundamentals of our economy [were] hollowed out through a series of past policy decisions, political power was centralised, weakening the relationships between the people, the businesses and the institutions who can make things happen beyond Whitehall. The economic enablers were privatised and outsourced, leaving accountability to a thicket of arm’s length bodies and regulators, too often without the predictability or the pace that underpins a thriving market economy. And our country was deindustrialised as the cost to make anything, to build anything here soared, and our dependence on unreliable sources grew, including in areas critical to our national security and sovereignty.Let me be clear, I recognise that the costs of business, its energy bills, regulation, burdens, planning constraints, labour costs, have grown since Covid and I want to draw the line.And whether it is the cost of business or the cost of living, the only way we deal with these in the long term is growth. Continue reading...
