Thread by @NIESRorg

The requirement for #fiscalpolicy is to find the right balance between flexibility to respond to changing socioeconomic circumstances and the credibility to maintain control of #debt.

A THREAD 🧵⬇️

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#AutumnStatement
#UKeconomy
#EconTwitter

niesr.ac.uk/publications/d…

Rules-based policies matter for credibility as they impose both external and internal discipline, help ensure economic agents condition on the govt’s plans and allow us to understand progress relative to the plan, as we outlined in our research back in the spring of 2021 👆

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We suggest five main proposals for a new #fiscalframework which seeks to address the current deficiencies:

1⃣ ▶️ The #Chancellor should set out a structured timetable for fiscal events and deliver a #Budget speech focused on the state of the economy and the

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...government’s socio-economic objectives that is more extensively debated and scrutinised
by Parliament and a Fiscal Council;

2⃣ ▶️ The @OBR_UK should publish pre-fiscal event reports with key issues to which the #Budget and the #AutumnStatement should respond

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3⃣ ▶️ The #Chancellor should provide more guidance as to how fiscal policy would respond if certain risks materialise and the OBR should produce economic forecasts and scenarios to inform

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4⃣ ▶️ @hmtreasury should create a new body of independent experts for ex ante advice and ex post evaluation of the key fiscal choices

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5⃣ ▶️Fiscal strategy has to be joined-up across the UK and all its constituent parts, with particular attention paid to distributional effects, productivity, well-being and ecological sustainability.

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The research was also published as a Commentary in a recent @NIESRreview special issue, which you can access here:

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