UK on 'thin ice' warns ex-Bank of England chief economist
Former Bank of England economist Andy Haldane has warned that the UK government is on 'thin ice' regarding fiscal policy ahead of the upcoming Autumn Budget. He urged the government to curb public spending to appease financial markets.
Why it matters
The warning underscores the economic pressure on the new government to balance fiscal responsibility with public service demands amidst high borrowing costs.
The U.K. is "on thin ice" ahead of its critical Autumn Budget, according to a former chief economist of the Bank of England, who warned the government must curb public spending and refrain from painful tax hikes.
Speaking to CNBC's Steve Sedgwick, Andy Haldane — a member of the central bank's Monetary Policy Committee until 2021 — said there were "perils" running into the budget update, currently scheduled for Oct. 28.
"The truth is we are skating on pretty thin ice in fiscal terms, and nothing would be worse both economically and politically than if the ice were to crack beneath our feet," Haldane said on the sidelines of the How Britain Can Win conference, hosted by Goldman Sachs 10,000 Small Businesses UK.
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