Bristol Business School

Author Jo Michell, Senior Lecturer in Economics

The media response to the Budget is always reliably low on content and high on hyperbole. Even by these exacting standards, 2017 has been a vintage year. Coverage has focused almost exclusively on the decision to raise National Insurance contributions for self-employed workers – with some side glances to the tax treatment of dividend payments. The macroeconomic implications of the budget have passed almost without comment.

In the days leading up to the budget statement, much attention was focused on Hammond’s proposed £60bn ‘rainy day fund’ – alternatively marketed in some outlets as a ‘war chest’ or ‘gas in the tank’ – to cope with Brexit contingencies.

What form does this fund take? The average reader probably imagines that ‘putting money aside’ involves a transfer of funds into an account somewhere. Maybe the Chancellor will open up an ISA…

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