What next?

The impact of Trussonomics, tax cuts and market turmoil

The last few days have seen a radical reshaping of the Government’s economic policy and a radical reaction from financial markets. Out have gone both Treasury orthodoxy and the legacy of the Johnson premiership, and in are lower taxes, higher borrowing – and higher borrowing costs as spooked markets respond.

Will this new strategy boost growth in the short- and medium-term? What does market turmoil mean for the Bank of England and Treasury – which has a deadline of 23rd November to explain how the public finances will be set on an sustainable footing? Are more tax cuts to come, or are spending cuts more likely?

In the presentation below, we explore these questions, and what they mean for the UK economy going forwards. You can also watch our event presenting this analysis, alongside input from Stephanie Flanders, Senior Executive Editor at Bloomberg and Head of Bloomberg Economics and Robert Colvile, Director of the Centre for Policy Studies.