The Chancellor of the Exchequer’s Pre-Budget Report (PBR) was one of the most arresting political events of modern times.
The Chancellor of the Exchequer’s Pre-Budget Report (PBR) was one of the most arresting political events of modern times. Alistair Darling’s delivery was as flat as ever, but what he had to say was truly dramatic: it amounted to a bonfire of the government’s own principles of fiscal management, and a colossal bet on the Treasury’s ability to issue undreamt-of volumes of government debt.
His package of measures was predicated on a bafflingly confident forecast that the recession will be over by the third quarter of 2009, and growth will return to its long-term trend by 2011. And it was constructed on a borrowing requirement of historic proportions, reaching a peak of £118 billion, or 8 per cent of GDP, in 2009-10, and going on to take the national debt above £1 trillion before the moment, beyond not just the next general election but the one after that, when fiscal balance might finally be achieved again.
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in