In May 2024 The International Monetary Fund warned Britain's government that it was on course to miss its debt target and said tax rises, rather than cuts, were likely to be needed to repair the public finances after the COVID pandemic and the surge in energy prices. Net borrowing excluding state-controlled banks was 20.5 billion pounds ($26.05 billion) last month, 1.5 billion pounds more than in April 2023, official data showed on Wednesday. It was higher than the median estimate of 19.3 billion pounds in a poll of economists which was also the expectation of the government's budget forecasters.
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No! From what I have read politicians need economic education. The issue of spending and tax DO NOT equate to household budgets and managing them in this way is disastrous for our economy. Plus economic health depends on many other things that appear to be being ignored. Yes we need to manage inflation but govt should spend more to bolster the economy and do good works/provide properly funded services and not focus on this minimisation rubbish.
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In a competent economic system a nation should have a national sovereign fund to draw on like Norway. Incompetent short termism is what leads to problems. In theory PSB should be constrained for all but infrastructure investment required to support necessary development. Too much is wasted however and political vanity projects are too much in evidence. Corruption and too little control abound. PSB is a vital tool but poorly used.
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