Haldane warns Budget will favour backbenchers over business

Summarised from 2 outlets · Updated 21 Oct, 00:20 · Archive

Former Bank of England economist Andy Haldane expects the coming Budget to prioritise Labour backbenchers over business concerns.

Andy Haldane, a former Bank of England chief economist who advised Prime Minister Andy Burnham, has warned that next week's Budget will prioritise Labour backbenchers over business and bond markets. Speaking at an Ipsos event, he expressed concern that the Budget will feature further borrowing and tax rises, moves he said would harm growth and deter investors.

Haldane stated his hope was for a Budget showing "voluntary restraint on spending" with no tax rises on households or businesses. "That would be the best thing to get growth going. That is my hope. It is not my expectation," he said, predicting instead "some further borrowing, and that we will see some further tax rises."

The economist, now president of a major business lobby group, has publicly endorsed Conservative plans for improving growth through cuts to business and employment taxes and reduced government spending and regulation. He criticised Labour's plan for an "expansive and expensive" state, warning it sits uncomfortably with the fiscal situation. He also cautioned against expected Labour windfall taxes on banks, saying such measures signal to investors "there's a chance that the tax man's coming for your profits".

How it is being reported

• Expect a Budget for backbenchers, not business or bond markets, Burnham's old aide warnsJohn Healey's Budget will aim to please Labour backbenchers rather than businesses or the bond markets, Andy Haldane, an ex-adviser to the Prime Minister has said.Daily Mail · 21 Oct, 00:00
• Andy Haldane: This will be ‘a Budget for the backbenchers, not business’A former Bank of England chief economist has warned he expects to see “further borrowing” and “further tax rises” in next week’s Budget as he threw his weight behind Kemi Badenoch’s plan on the UK economy. Speaking at an Ipsos event, Andy Haldane said the Budget has been a “less lengthy and a less leaky [...]City AM · 20 Oct, 13:35

In this story: Andy Haldane · Andy Burnham · John Healey · Kemi Badenoch · Bank of England · Labour Party · Conservative Party

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