The Chancellor's Statement: Positive Money response

London, 29th July 2024 - Positive Money responds to Rachel Reeves’ speech in the House of Commons today. 

Fran Boait, co-executive director of Positive Money, said:

“To see the Chancellor echoing the same economically illiterate rhetoric as the last government to justify further spending cuts is exasperating.

“It’s high time politicians got this straight: the government budget is categorically not like a household budget. The government has the power to increase its own revenue, and it can borrow at far better rates than households, with far different repayment expectations, too.

“As well as better borrowing, there are also a range of wealth taxes the Chancellor could deploy to bring in billions without harming household finances. Or better yet, instead of just blaming the state of the economy inherited from the last government, Reeves could talk about the arbitrary fiscal rules Labour has inherited from them, and have the courage to change these, freeing up billions for public spending in the process.”

Notes:

• Key points of the speech can be found here: https://www.gov.uk/government/news/chancellor-i-will-take-the-difficult-decisions-to-restore-economic-stability 

• The full transcript of the statement can be read here: https://www.gov.uk/government/speeches/chancellor-statement-on-public-spending-inheritance

About:

Positive Money is an international research and campaign organisation working to redesign our economic system for social justice and a liveable planet. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of supporters. Find out more: positivemoney.org