Are the Tories about to abandon austerity?

Last week I wrote a column elsewhere arguing, among other things, that it is time for the government to look beyond its (almost impossible-to-meet) commitment to a budget surplus at some point in the 2020s and think about a looser target that might allow more public spending, seeking perhaps a primary but not overall surplus. (IE tax receipts equal spending on everything except debt interest.)

I mention this not to advertise that column but because I think some of the reactions to it are worth sharing. As expected, one hawkish Cabinet friend was quick to scold me for advocating ‘yet more borrowing’. But another, well-acquainted with Treasury thinking, simply described the idea as ‘interesting’ and suggested we discuss it soon.

Today, the Institute for Fiscal Studies has likewise questioned that commitment to an overall surplus by the middle of the next decade, suggesting it might be more ‘sensible’ to abandon it. These suggestions come amid countless calls for more spending, on welfare and public services.