This was not as radical a Budget as many had feared and some had hoped. It was, as the Chancellor presented it, a “One Nation” Budget. From the macroeconomic viewpoint, the most important aspect was the smoothing of the intended fiscal tightening across the Parliament, with the result that the budget deficit turns into a surplus one year later than originally planned. This means that the immediate threat to the economy from tough fiscal tightening has been alleviated and it makes it all the more likely that the economy will be able comfortably to absorb the fiscal squeeze.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services