‘Doom loop’ looming as Reeves axes regulator
Chancellor of the Exchequer Rachel Reeves at the Confederation of British Industry (CBI) conference at the QEII Centre, London, November 25, 2024
CHANCELLOR Rachel Reeves risks pushing Britain into an economic “doom loop,” a top economist warned today as uproar broke out over the sacking of a top regulator.
Former Bank of England chief economist Andy Haldane told Sky News that “it would be deeply counterproductive to both growth and to the fiscal position” if the Chancellor’s plans “led to a cutting back on investment and indeed in spending more generally.”
“Then I think you really are into a doom loop between debt and growth. And that’s a situation to avoid at all costs,” he warned.
Similar stories
Labour accused of ‘balancing the books off the backs of the poor’ in spring spending statement
Instead of responding to changed circumstances by adjusting policy, Reeves is using fiscal ‘rules’ as an excuse to force government departments to make even deeper cuts than she had already flagged, says CLAUDIA WEBBE