The former Bank of England chief economist Andy Haldane has urged the Chancellor, John Healey, to avoid a 'budget for the backbenchers' with tax rises for business and further borrowing.
Speaking at a NIESR and Ipsos pre-Budget briefing on Tuesday 20 October, Haldane said:
"My hope is that this is a budget for business and for bond markets."
He said he hopes for spending restraint, but expects Healey to dip into the fiscal headroom and raise levies. According to AJ Bell, he said that would be bad news 'from a growth perspective'.
Haldane also warned that a windfall tax on banks could harm investment. He backed the Conservatives' 'smaller-state' platform as the likeliest path to growth.
AJ Bell says Haldane was reported to have advised the Prime Minister, Andy Burnham, earlier this year. The Independent describes him as the PM's 'former advisor'.
The Chancellor delivers the Budget to the Commons on Wednesday 28 October.