Former Bank Of England Chief Economist Warns UK Could Face Major Financial Crisis

(MENAFN- AzerNews) Qabil Ashirov Read more

Andy Haldane, the former chief economist of the Bank of England, has sharply criticised the British government's economic policies, warning that the country could face a serious financial crisis.

Haldane made the remarks in an article published in The Independent. He argued that Prime Minister Andy Burnham's failure to take adequate measures to reduce government borrowing costs under his budget strategy could trigger significant economic disruption.

Using medical terminology to describe the situation, the former central bank economist warned that the British economy was at risk of suffering a "heart attack". He described the prime minister's economic decisions as irresponsible, adding that if someone demonstrated similar negligence as a doctor, they would be barred from practising their profession.

Haldane, who has provided informal economic advice to Burnham since he took office as prime minister in July, said Britain's public finances were in an extremely vulnerable position. In his assessment, most of the country's budget indicators point to significant risks.

He also criticised the prime minister's opposition to sharp cuts in public spending. Haldane warned that the government's current approach could increase the risk of a repeat of the financial instability that followed Liz Truss's budget decisions in 2022.

Such a scenario, he argued, could have particularly severe economic consequences for low-income households.

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