In July, Rachel Reeves made a comment that Andy Haldane News’ Politics Hub with Sophy Ridge was a “bad idea” because it created a sense of “fear and foreboding” at a time when the UK was experiencing a surge in confidence.
Shortly after assuming office, Ms. Reeves made the assertion, which was interpreted by many as a warning that her first budget in October would involve a severe combination of tax increases and spending cuts.
Mr. Haldane expressed his hope that the government would not adopt an austerity policy, but he cautioned that wealth taxes may potentially be harmful to the economy.
“The black hole event was needless and probably not beneficial economically,” he stated.
“If a black hole is what it appears to be, then that’s one thing. But I believe it was a poor idea to just let that sit for three months.”
He responded that it was “much better to say nothing until you provide solutions” in response to a question about what the government ought to have done.
Mr. Haldane went on: “It’s unfortunate because right after the election, there was a sense of refresh, a sense of renewal, and a confidence about the UK both domestically and internationally. That’s generated a fear and foreboding and uncertainty among consumers, among businesses, and among investors.”
