Steve Baker

Autumn Statement: How long can we keep skating on thin bond market ice?

In today’s Autumn Statement there was some great news on jobs and fuel duty, but it’s surrounded by a surreal atmosphere. We must still beware the bond market.

Employment is at a high with 1.2 million private sector jobs created since early 2010. Youth unemployment is falling – we’re doing much better than our neighbours. Government is living beyond its means to the tune of £108 billion, down from £159 billion in 2009-10. Fuel duty has been frozen at merely eye-watering levels: those of us who campaigned for it will now have to defend the consequences. Billions will have to be found from somewhere else.

We’re told the Government still has an even chance of balancing the books within five years but it will take an extra year before the debt is falling.  ITV’s polling tells us only 6 per cent of the public realise the national debt is going up.

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