Britain’s borrowing bill soared to more than £18.3 billion in August, far above City estimates of £15.6 billion and the OBR projection of £14.8 billion. The government spent £8.8 billion on servicing debt alone. The highest August figure since records began in 1997…
In fact, total borrowing in the fiscal year beginning in April has topped £77.3 billion, more than £8 billion above OBR forecasts. Healey has lost at least £12 billion of his fiscal headroom. All the warning lights are flashing – tax hikes are coming…
Andy Haldane, Burnham’s recent adviser on the economy who has not taken up a No10 job, told Andrew Marr on LBC:
“The market now suspects that this is a traditional tax-and-spend socialist government with better TikTok videos…
imposing windfall taxes on oil & gas or on banks or upping capital gains tax would […] repeat the mistake that Rachel made […] The Achilles heel, the fiscal Achilles heel of this government thus far has been its unwillingness and/or inability to cut public spending.”