RE: OBR will likely shred her plans!12 Oct 2022 17:30
It remains the case that the UK has relatively low levels of national debt as a proportion of GDP as compared to other G7 countries and major economies. That's not to say it's good, I'm all for fiscal rectitude (or rectal fiscitude as my wife and I like to call it). As I understand it, the OBR will say that Truss's measures to promote economic growth cannot hope to induce enough growth to provide sufficient extra taxes to cover the extra spending she is proposing. She was therefore suggesting trying to cut some areas of public expenditure, but Labour and Tory rebels are ruling that out. If she can freeze public spending though, inflation will reduce it as a proportion of GDP - and also erode the value of the national debt. It's an ill wind...