Today the Office for National Statistics announced that Northern Rock plc and the Bank of England are both to be classified as part of the public sector. This will temporarily push public sector net debt significantly above the ceiling of 40% of national income set down as one of Gordon Brown's fiscal rules in 1998. But the long term impact on net debt - and the need for any fiscal policy response - remains uncertain for the time being.
Authors
Carl Emmerson
Carl, a Deputy Director, is an editor of the IFS Green Budget, is expert on the UK pension system and sits on the Social Security Advisory Committee.
Robert Chote
Gemma Tetlow
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