With just five weeks to go until Chancellor Rachel Reeves presents her first Budget on 30th October, a letter written to the FT by six distinguished economists including Lord Gus O’Donnell, Lord Jim O’Neill, Marriana Mazzucato and Mohamed El-Erian, advising her to be mindful that any real-term substantial cuts in public expenditure would not enhance the opportunities for the Government’s plans for ‘a decade of national renewal.’
This respectful letter reminded the Chancellor that implementing draconian expenditure cuts could only lead to ‘low’ investment, withering growth, thus delivering a weaker economy. The credence and importance attached to growth has been the key ingredient for the Government’s recovery plans.
