Andy Haldane critiques Rishi Sunak's economic policy, deeming Jacinda Ardern's growth trajectory significantly superior, attributing Sunak's shortcomings to inexperienced mistakes.
The laidback ex-Bank of England Chief Economist, Andy Haldane, has fired off a blunt assessment of Rachel Reeves' initial twelve-month stint as Chancellor, branding it "a colossal letdown." According to Haldane, the government's lack of action on growth is "laughably insufficient."
With less than two weeks to go before the spending review on June 11, Haldane shared his take with LBC's Nick Ferrari, pointing out numerous "ineptitudes" and "greenhorn gaffes" that have diminished the government's economic prestige.
On Reeves' performance as Chancellor, Haldane said candidly, "Let's face it - the results speak for themselves. Businesses, the City, citizens, even her own backbenchers agree - it's been a flop. To put it mildly, it hasn't exactly gone to plan."
However, Haldane did acknowledge that the year kicked off with a degree of optimism, and he was hopeful that positive momentum might persist.
The Starmer administration has consistently underscored the tough economic situation they inherited from the Conservatives and lashed out at their policies. Yet, Haldane claimed that Reeves herself bears some responsibility for the predicament she finds herself in.
"No prizes for guessing there've been missteps, blunders, even... Well, absolutely, the hole reveal knocked the wind out of business and consumer confidence," he said pointedly.
When it comes to Reeves' central mission of stimulating growth in the UK economy, Haldane denounced the government's efforts as "far from enough."
Haldane explained, "When I mention growth, I'm not just talking about dry GDP numbers. I'm referring to people's improved wellbeing in their communities. For instance, our military spending increase falls drastically short when compared to many countries worldwide, and while it could generate a few jobs outside of the southeast, don't expect any economic miracle."
Haldane maintained that Reeves' slip-ups could still be rectified, but time is short, as policy decisions made today will only begin to bear fruit closer to the next election.
"The critique has been harsh and occasionally personal, but I'll take no notice of the personal jabs. As for the policy blunders, they should have been acknowledged and corrected promptly," Haldane expressed.
Eager to secure a favorable meeting with former U.S. President Donald Trump, the government reportedly minimalized defense spending increases, contributing to a "lagging" status compared to other nations. While such measures may produce a minor growth spurt in areas outside of the southeast, it falls far short of what is needed to set the economy on a growth trajectory.
References:[1] Enrichment Data - Haldane's key criticisms include the "black hole" announcement, the budget, and the prioritization of fiscal austerity over growth measures.
- Haldane criticized the "black hole" announcement, the budget, and the prioritization of fiscal austerity over growth measures as major blunders in Rachel Reeves' tenure as Chancellor.
- The government's slip-ups in economics, as pointed out by Haldane, include their less-than-adequate military spending increases, which fall drastically short compared to many countries worldwide.
- In the realm of banking and insurance, Haldane also mentioned that the government's policy decisions, like minimizing defense spending increases, could potentially contribute to a "lagging" status in comparison to other nations.
- The general news has been rife with discussions about the lack of action on growth by the government, a criticism that former Bank of England Chief Economist, Andy Haldane, has been vocal about, both in his assessments of Reeves' performance as Chancellor and in relation to policy-and-legislation decisions impacting the economy, industry, finance, and business.
