Former Bank of England economist warns Britain is on thin ice ahead of budget

Britain is facing a precarious fiscal situation ahead of its Autumn Budget, according to Andy Haldane, former chief economist of the Bank of England. Speaking to CNBC, Haldane warned that the government must exercise restraint in public spending and avoid painful tax hikes to appease financial markets. The budget, scheduled for October 28, is seen as a critical moment for the U.K.'s economic stability.

Haldane, who served on the central bank’s Monetary Policy Committee until 2021, described the country's fiscal position as 'thin ice.' He cautioned that a misstep could lead to severe economic and political consequences, emphasizing the need for careful management to prevent a fiscal crisis.

The warning comes amid broader concerns about global economic risks, including fluctuations in oil prices and market volatility in assets like gold and CME futures. Haldane’s comments underscore the delicate balance the U.K. government must strike to maintain market confidence.