Politics · United Kingdom · 3 hrs ago
Andy Haldane warns Budget must cut public spending to avert crisis
Andy Haldane says the government must cut public spending in its Autumn Budget to reduce the risk of an economic crisis.
Haldane is a former Bank of England chief economist and previously advised Andy Burnham informally when Burnham was mayor of Manchester.
He says Britain’s public finances are precarious, with limited room to raise taxes or borrow more.
He warns that delaying spending decisions could damage the economy and government support, comparing the risk to the crisis under former prime minister Liz Truss.
Haldane also called a proposed £2 billion tax increase on banks “delusional,” arguing that households and businesses could ultimately bear the cost.
Banks and business groups oppose the tax increase, while Labour’s union backers say lenders should pay more because of their profits.
Chancellor John Healey is expected to set out the Budget on October 28, with the government seeking funds to repair public finances and support living costs.
Andy Haldane warned that the Government risks a Liz Truss-style crisis if it does not cut public spending in the Budget.
He said Britain’s fiscal position is precarious and that the country is close to being taxed out and maxed out on borrowing.
Haldane urged the Government to reduce taxes and the size of the state to support growth.
He criticised a proposed £2 billion tax increase on banks, saying its costs could fall on households and businesses.
The Autumn Budget is scheduled for October 28.
- Who
- Andy Haldane, former Bank of England chief economist, warned the Government.
- What
- He said public spending must be cut in the Budget to avert a crisis.
- When
- The warning was reported on October 24, 2026; the Budget is scheduled for October 28.
- Where
- The warning concerned the UK and its public finances.
- Why
- Haldane said Britain’s fiscal position was precarious, with high borrowing costs and limited room for more taxes or borrowing.
Andy Haldane and critics of the bank tax
Labour’s union backers
Public spending
Andy Haldane and critics of the bank tax
Haldane urged the Government to cut public spending and reduce the size of the state.
Labour’s union backers
Not stated
Bank taxes
Andy Haldane and critics of the bank tax
Haldane opposed the proposed increase, warning that households and businesses could bear its costs.
Labour’s union backers
Labour’s union backers said banks enjoying bumper profits should pay more.
The Daily Mail published its report of Haldane’s warning.
The report said Haldane had warned that the Government risked a crisis without spending cuts.
The Autumn Budget is scheduled to take place.
- Warning
- Haldane said spending cuts were needed to avert a Liz Truss-style crisis.
- Proposed bank tax
- £2 billion
- Budget date
- October 28
- Borrowing costs
- The UK had the highest borrowing costs in the G7, according to Haldane.
- Barclays profits
- Quarterly profits rose 12 per cent to £2.3 billion.
What people are saying
The penny has not yet fully dropped, including in Downing Street.
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being taxed out and maxed out in terms of borrowing.
penny wise, pound foolish