“The Chancellor did not comment in his speech on the additional £115bn set to be added to the bill for debt interest in the next five years, and with the need to service this increase, his business growth plan received relatively little funding beyond changes to national insurance and full expensing.
“Freezing public sector capital expenditure over the next five years also means the Chancellor is relying on the private sector to deliver the additional investment needed to shift the dial on economic growth.
“While inflation may have boosted tax receipts, there hasn’t been a commensurate increase in public service budgets, and aspirations to constrain public spending are highly likely to be disappointed. More importantly, there is still no fiscal strategy to address the big challenges facing the public finances over the longer-term, so fiscal illusions undoubtedly remain.”
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