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Will Hutton criticises the Office of Budget Responsibility & others underwhelmed by Rachel Reeves' budget & its strategy for (renewed) public investment;
What they are under-estimating is the multiplier effect of investment, which is widely recognised elsewhere, but for the OBR seems to be being downplayed & minimised.
Reeves' may be vindicated (on this at least) in time.
(But there are plenty of other good reasons to be gloomy about the budget!)
@ChrisMayLA6 Just pure Keynesian. The only downside is if they waste it on AI with minimal multiplier effect.
If only she was a 'pure Keynsian' Chancellor; there are Keynes-associated element to her positions, but she's not really a Keynsian in the round (sadly)
@ChrisMayLA6 Phil Moorhouse (YouTuber “A different bias”) thinks that what will make sense of the budget is new deals with the EU to which will increase growth. I think he may be right. Obviously Reeves can’t say that openly (or even suggest it to the OBR), but it may well be part of her thinking.
Would make sense....
I suspect also that #kemibadenoch may be less inclined to call them out than people expect. Her track record in office over retaining #eu legislation was pretty pragmatic,
@ChrisMayLA6 I hope Will Hutton is right. Growth is not just about investment, there are lots of policies that can make things easier that don't necessarily cost anything. Joining the Customs Union, perhaps sold as a massive removal of red tape constraining businesses, is the big one, but there are plenty of smaller things that can or are being done
I also think stability and not lurching from one political crisis to the next also helps, let's see if labour can do that better than the Tories!