Truss and Kwarteng have made no effort to ensure the public finance numbers add up

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Injecting demand into this high-inflation economy leaves the Government pulling in the exact opposite direction to the Bank of England

without even a semblance of an effort to make the public finance numbers add up.

Instead, the plan seems to be to borrow large sums at increasingly expensive rates, put government debt on an unsustainable rising path, and hope that we get better growth. This marks such a dramatic change in the direction of economic policy-making that some of the longer-serving cabinet ministers might be worried about getting whiplash.

Kwasi Kwarteng has shown himself willing to gamble with fiscal sustainability in order to push through these huge tax cuts. He is willing to shrug off the risks of inflation, and to invite significantly higher interest rates. And he haswithout accompanying forecasts from the Office for Budget Responsibility.

, who are likely to raise rates in response. Early signs are that the markets – who will have to lend the money required to plug the gap in the government’s fiscal plans – aren’t impressed. This is worrying.

 

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They are WEF puppets that’s why !

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