Today is the Spending Review – and Rishi Sunak is outlining the government’s spending priorities for the year ahead. I spoke to BBC News about the opportunities, challenges and trade-offs the chancellor will have to consider following the biggest economic crash for 300 years.
Economists say cutting spending or raising taxes too soon risks pulling the rug from under the economy before it has had time to get back on its feet and getting the economy growing is a much better way to increase tax take.
If we are paying more tax or our pay is low we’re less likely to go out and spend, points out Iona Bain who writes the Young Money blog. “And that’s what’s going to be needed to kickstart the economy.”
Read the rest of my thoughts on the Spending Review here.