It will be long into the following year before these measures have any effect on economic growth.
Actually, His Majesty’s main legislative announcement is intended to advance “economic stability.” This is significant. In the UK, stability is something that is taken for granted rather than something that typically requires legislation.
Many little adjustments have been made to the way the government makes major choices about housing, transportation, infrastructure, and planning. Ultimately, the goal is to increase private investors’ confidence regarding policy and the economy.
For instance, the “Budget Responsibility Bill” is a fancy way of saying that there won’t be another terrible Liz Truss mini-Budget moment.
As was the case in late 2022 when Truss unveiled £45 billion in unfunded tax cuts, no chancellor in the future will be able to ignore the conclusion of the Office for Budget Responsibility (OBR), the government’s independent financial forecaster.
It is hoped that this will be such a pillar of stability and credibility that investment in the UK will soar and that borrowing rates for individuals, companies, and the government will stabilize rather than rise once more. This is referred to as “fixing the foundations” inside.
