Politics
Latest budget: Labor playing 'silly games', says IFS; Keir Starmer defends tax rises | Political news
Paul Johnson, director of the Institute for Fiscal Studies, stressed that “sustainable growth takes time to happen” after the Office for Budget Responsibility said it could start from 2032.
In yesterday's Budget, Chancellor Rachel Reeves announced 40 billion in tax rises, while confirming extra spending on the NHS, transport and schools.
Insisting many people need support now, Mr Johnson said the reality is “sustainable economic growth takes time to happen”.
He told Sky News: “Governments can do things to improve it. And Rachel Reeves has taken a step forward by maintaining capital spending.
“But it is true that this will have its advantages in 10, 20, 30 years.
“You can and must also address the planning system and the cost of construction, which is really holding back our economy, competition law, trade and relations with the European Union.
“There's one thing she didn't do in yesterday's budget, which she could have done, which was reform and improve the tax system, but there really wasn't none of that.
“Almost none of this was anticipated in yesterday’s budget.”
Mr Johnson added there was “much more to do”.
But he said: “To be fair to this government, of course they have only been here for a few months, three or four months, they have time to do things.
“But I don’t think people should expect government policy to make much difference to growth over the next couple of years.”
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