Rachel Reeves Has Made Welcome Changes To The Fiscal Rules

3rd November 2024

Many of the chancellor's changes to the fiscal rules and framework have been called for by the Institute for Government.

Rachel Reeves' budget announcement marks the ninth change of the UK's fiscal rules in 16 years.

Gemma Tetlow says Rachel Reeves has made some long-overdue improvements to the fiscal rules and framework - but like her predecessors the chancellor has left herself little headroom.

It is easy to be sceptical of the importance of fiscal rules when they have been changed so frequently by UK chancellors: Rachel Reeves' latest announcement marks the ninth change of rules in 16 years. But fiscal rules - and, more importantly, the wider fiscal framework that goes with them – are crucial for helping to ensure fiscal sustainability and support good policy making.

There have been clear problems with the fiscal rules and framework in recent years and the government has now made some welcome changes – many of which the Institute for Government has previously called for – which should support better and more stable policy making, as long as the chancellor sticks to her commitments.

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