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A budget surplus is nothing to celebrate

Not when growth is slowing down so dramatically

By Vicky Pryce  

Chancellor Philip Hammond. Photo: NurPhoto/SIPA USA/PA Images

There is nothing sacrosanct about having a budget surplus if it means slower growth in the economy. This holds true as long as markets are prepared to lend to you at reasonable rates, and in the case of the UK they are.

Interest rates at which we borrow have hardly moved. Indeed the cost to the Exchequer of servicing the debt is similar to what it was in 2008 despite the debt trebling over that period.

Why is this relevant? Because…

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