Key facts
- Haldane expects the autumn statement to increase taxes and borrowing.
- He warned against a windfall tax on banks.
- Haldane backed Conservative proposals for a smaller state to boost growth.
Former Bank of England chief economist Andy Haldane expressed concern that the upcoming UK budget, expected on October 28, will likely involve tax increases and increased borrowing, which he believes would be detrimental to economic growth. Speaking at a pre-budget briefing, Haldane advocated for a "smaller-state" approach, emphasizing the importance of enabling the private sector to drive economic expansion. He specifically cautioned against imposing windfall taxes on banks, arguing that such measures could deter investment by creating uncertainty for investors about potential tax liabilities. Haldane suggested that the UK should emulate cities like Manchester in attracting capital and businesses to foster national growth. Research from Ipsos and Niesr indicates that a majority of Britons anticipate tax hikes and increased government borrowing, though public opinion is divided on the best approach to managing national debt.