Faisal Islam: The 10-year plan will have to fill the gaps from this 'micro Budget'
Source: BBC ·
Chancellor John Healey's plans fall short of radical action to create a promised new economic model.
From the source
It was not a mini Budget, but it was rather small. It might be called the "micro Budget". Small does not necessarily mean bad, but it clearly falls short of radical action to create a promised new economic model. A new "theory of growth" was not unveiled as promised by the prime minister Andy Burnham. It was preamble, roadmap, consultation, perhaps the starter to the main course, which appears to be the PM's 10-year plan next month. It went unsaid, but the clear stategic aim of Healey's statement was to be the "anti-mini Budget". This "steady as she goes" predictable fiscal event set out to avoid the aftermath seen following Liz Truss's mini-budget, in which unexpected and unfunded tax cuts spooked the bond and currency markets. The markets didn't even flicker on Healey's announcement of £65bn of extra borrowing over the next five years - government interest costs have actually fallen since Wednesday, against the backdrop of market turmoil due to the US-Iran war. The core of the…