Overview
- The former Bank of England chief economist said months of tax‑rise rumours are causing households and businesses to save rather than spend.
- He argued the elongated, leaky process has made repeated mistakes and called for either watertight discipline or a formal open consultation.
- The chancellor ruled out a mooted income tax rise in a late U‑turn last week, which Treasury sources linked to better OBR forecasts.
- Recent ONS data showed GDP barely grew in the third quarter and September output fell 0.1%, with Rachel Reeves partly attributing the dip to Jaguar Land Rover's cyber‑attack shutdown.
- Gilt markets priced extra risk on Friday, with 10‑year yields spiking before easing this morning.