Key facts
- Andy Haldane warned that the UK government appears to be a 'traditional tax and spend socialist government with better TikTok videos'.
- Haldane stated the government's 'Achilles heel' is its unwillingness and/or inability to cut public spending.
- He advised that spending cuts would provide significant funds and instant credibility, lowering borrowing costs.
- UK bond yields are at 28-year highs ahead of the October 28 Budget.
- Haldane believes hard choices are looming on the horizon regarding budget headroom.
Former Bank of England chief economist Andy Haldane has warned that the UK government risks alienating bond market investors with its current fiscal approach. Speaking to LBC, Haldane described the government as appearing to be a 'traditional tax and spend socialist government with better TikTok videos'. He identified the government's 'Achilles heel' as its 'unwillingness and/or inability to cut public spending'.