Former Bank of England Chief Economist Warns UK of Fiscal Risks

The U.K. faces a precarious fiscal situation ahead of its Autumn Budget, according to Andy Haldane, a former chief economist of the Bank of England. Speaking to CNBC, Haldane warned that the government must tighten public spending and avoid raising taxes to prevent further economic strain.

Haldane, who served on the central bank’s Monetary Policy Committee until 2021, described the current fiscal state as ‘skating on pretty thin ice.’ He emphasized the risks of mishandling the budget update, which is scheduled for October 28. The warning underscores concerns that the government’s financial decisions could trigger economic instability.

The former economist stressed that failing to address these issues could have severe economic and political consequences. His remarks highlight the delicate balance the government must strike to appease financial markets while managing public finances.