In this briefing the Resolution Foundation stress that the emphasis that both main parties have placed on credible fiscal frameworks in this campaign is laudable. Such rules are hugely important for the government’s overall economic priorities. In setting out new fiscal rules, it is vital that they provide a clear framework for sustainable public finances, constraining the temptation for policy makers to promise unfunded giveaways.
This briefing highlights that the Conservatives and Labour already look likely to be on course to break their new fiscal rules less than a month after their announcement. This position creates difficult choices for the parties: raise taxes further, return to austerity, renege on manifesto commitments or abandon their new fiscal rules at the first hurdle.