Box sets » Fiscal policy
In each Economic and fiscal outlook we publish a box that summarises the effects of the Government’s new policy measures on our economy forecast. These include the overall effect of the package of measures and any specific effects of individual measures that we deem to be sufficiently material to have wider indirect effects on the economy. In our March 2024 Economic and fiscal outlook, we adjusted our forecast to account for fiscal loosening and considered the effects of policy to boost employment on our potential output forecast.
In Budget 2024, the Chancellor has chosen to loosen fiscal policy following the improvement in the underlying fiscal outlook. This continues the consistent pattern of expansionary fiscal policy packages that have been announced in recent years. Since 2010, in every instance of good news on the underlying fiscal position, the policy response has been to spend at least some of the windfall.