As the FT has noted this morning:
Economists were unanimous after Sajid Javid’s spending review on Wednesday: The chancellor’s fiscal rules were dead and Boris Johnson’s government, much like that of Donald Trump in the US, no longer cared much about budget deficits.
Quite so, and I agree. This has been apparent since Johnson started flashing the cash. Trump-style.
But an important question follows, and that is where labour is, and the Scottish Growth Commission come to that. Both are dedicated to what I have long described as wholly unnecessary fiscal rules, which the Tories have for their own inappropriate reasons now abandoned. As the FT also notes:
Simon Wren-Lewis, professor of economics at Oxford university and the inspiration behind part of the Labour Party’s own fiscal credibility rule, said, “[the new Tory position] is a complete change from the previous idea that you’ve got to get [debt] down”.
Isn’t it time Labour changed too? Not, I stress for the Tory reason – which is panic reaction to their own failings – but because we have a climate emergency that demands a Green New Deal and that in turn demands government spending on investment at an unprecedented rate that I have no doubt people are willing to fund?
The Labour Fiscal Rule needs to be consigned to history.