In These New Times

A new paradigm for a post-imperial world

George Osborne abandons 2020 UK surplus target

Posted by seumasach on July 2, 2016

Andrew Sentence, former member of the Bank of England’s interest-rate setting Monetary Policy Committee, said the decision was surprising.

“Both the BoE and the chancellor need to be careful about responding too quickly to political events,” he said.

“The chancellor should wait until the autumn when the OBR deliver new economic forecasts he can respond to.”

Yes, in a world where words have consequences, it is surprising for the chancellor to talk down Britain’s financial state.Even more surprising is that the cue for this was contained Teresa May’s candidacy speech. She is tipped to become the next prime minister. Is she working in tandem with Osborne to spook the markets? Is this one of the ways that Brexit can be “walked back” as Kerry has hinted. With the elite divided it is hard to know which side the various actors are playing. But it doesn’t look good for the neocon Brexiteers.

Financial Times

George Osborne has abandoned his long-held goal of reaching a surplus in the UK’s public finances by the end of the decade.

Read more

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