UK Fiscal Policy Lacks Discipline as Parties Prioritize Spending over Debt Reduction

Neither the current UK government nor the opposition Labour party are willing to restrain public spending enough to reduce mounting debt burdens.

Fiscal rules meant to constrain deficits and debt levels are routinely suspended or altered to allow higher spending, undermining their credibility.

Tax cuts and other vote-winning measures ahead of elections take priority over fiscal restraint.

External shocks are used as justifications to relax fiscal targets and allow deficits and debts to keep rising.

Without a credible fiscal framework focused on rebuilding buffers, UK debt trajectories appear unsustainable.