<p>Gordon Brown's budget policy is founded on strict rules about the uses of public debt and its physical limits. So if public spending is to continue to grow at the current rate, tax increases are unavoidable.</p> </p><p> </p><p><p>On Wednesday, Gordon Brown will outline the Pre-Budget Report. Next spring's Budget proper is expected to set the envelope for next summer's Spending Review, which will plan public spending until 2008.</p>
Authors
Sarah Love
European Commission (formerly IFS staff)
Comment details
- Publisher
- IFS
Suggested citation
Frayne, C and Love, S. (2003). Fiscal rules at breaking point [Comment] IFS. Available at: https://ifs.org.uk/articles/fiscal-rules-breaking-point (accessed: 20 May 2024).
More from IFS
Understand this issue
Public investment: what you need to know
25 April 2024
The way Chancellors respond to economic news adds to our debt - here's why
1 March 2024
2p cut is welcome but fiscal risks are serious
23 November 2023
Policy analysis
Top-ups to the Scottish Budget for 2024–25 are likely – but huge uncertainty on their scale
22 February 2024
Outlook for the public finances
17 October 2023
No room for unfunded tax cuts or spending increases – this year or next
17 October 2023
Academic research
A monetary-fiscal theory of sudden inflations
20 December 2022
Spending Review 2021: plans, promises and predicaments
12 October 2021
Rewriting the fiscal rules
12 October 2021