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Chancellor’s U-turn has calmed markets but economic uncertainty remains, ICAEW says

Author: ICAEW

Published: 17 Oct 2022

Responding to the Chancellor’s statement today, reversing the mini-budget, Alison Ring, Public Sector and Taxation Director for ICAEW, said:

“The Chancellor rightly acknowledges that families and businesses need stability, and that our public finances must be sustainable. 

“Today’s announcement has reduced some fiscal ambiguity and helped calm the markets, but economic uncertainty remains. News that the energy price cap protection will now end in April will worry many households who - like businesses and the public finances – are being adversely impacted by higher borrowing costs, adding to the risks of a deeper recession.

“Recent events have highlighted the absence of a long-term fiscal strategy to put the public finances on a sustainable path. It’s vital that October’s fiscal plan does more than just stabilise a fragile situation. The UK needs a credible plan that restores public and business confidence, strengthens the public balance sheet and builds resilience, and delivers much needed investment in infrastructure, skills and economic development.”