As a newly elected MP Rishi Sunak spoke in the budget debate of 2015, saying:
That to me suggests a simple conclusion: in normal times, public spending should not exceed 37% of GDP.
And he added:
Whether one is a Thatcherite or a Trotskyite, the rules of budgeting are the same: one cannot sustainably spend more than one earns. I commend the Chancellor for acting on that principle and ensuring that Britain’s finances will once again be back in the black.
Yesterday he said:
...we’re going to change the whole mindset of Government.
To make sure economic decision-making reflects the economic geography of the country…
As a result the Red Book said:
Government spending is now set to be 40.7% of GDP in 2024-25.
And as the OBR noted, borrowing is going to rise under Sunak:
So was Sunak wrong in 2015?
Has he seen the light?
And will his new fiscal rules reflect that fact that borrowing is now to be embraced?
I wish t would. But I rather strongly suspect that this man still thinks the country is like a household, and that we will all pay the price for that.
Hat tip: David Lowry