Fraser Nelson Fraser Nelson

Osborne’s welcome conversion to the advantages of a budget surplus

There should always be celebration when a sinner repents, and so it’s great to see George Osborne’s belated conversion to the cause of budget surpluses. As the above graph shows, he has not seemed in a rush to hit surplus himself – giving him many more years of increasing the national debt. James Forsyth summed it up brilliantly: Osborne is the St Augustine Chancellor: give me fiscal responsibility, but not yet! And today, he will add something: when I get there, let’s make it illegal for anyone not to balance the budget again! In economics, as in much else, converts are always the most zealous.

Osborne’s new plan—to have surpluses mandated by law—makes a lot of sense. Normally, I’m against legal devices by which one government seeks to tie the hands of its successor. It’s just not the British way, until Gordon Brown started it and the Tories felt they had to retaliate. But

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