Markets want credibility and stability as the UK Budget nears
The government needs more fiscal headroom but must ensure it does no harm
The government needs more fiscal headroom but must ensure it does no harm

Markets ultimately will take notice if the government demonstrates its ability to lower deficits

Delays in dealing with fiscal pressures risk further damage to household consumption, corporate investment and overall growth

Reassessing taxes and spending every six months introduces excessive policy uncertainty

The UK government must now show it can turn investment into growth

The chancellor must initiate lasting reforms to raise revenue and cut costs

History suggests the political approach ends in unsustainable debt and lower GDP