Chancellor brings forward further medium-term fiscal plan measures
As the saying goes, a week is a long time in politics. However, recent events have been unprecedented. On 23 September, the chancellor, Kwasi Kwarteng, delivered a statement called ‘The Growth Plan’ – aiming to tackle energy costs to bring down inflation, back businesses and help households.
Three weeks later, after huge turmoil, a reversal of most of the elements of that plan have been announced. A new statement, called The Medium Term Fiscal Plan is planned for 31 October, where the Chancellor will publish the government’s fiscal rules alongside an Office for Budget Responsibility forecast, together with ‘further measures.’
The changes, mostly reversals, outlined on 17 October are designed to ensure the UK’s economic stability and provide confidence in the government’s commitment to fiscal discipline.
What is the current position?
Bear in mind that this is not the end of the story. Government departments will be asked to find efficiencies within their budgets and the Chancellor is expected to announce further changes to fiscal policy on 31 October to put the public finances on a sustainable footing.