Labour Government Takes Power
After Mrs May had received yet another defeat in the Commons, this time on a vote of no confidence, a general election was called.
However the dying days of the Conservative government had one trick up its sleep. They passed the Parliamentary Medium Term Financial Plan. With wider remit than a budget, this imposes budgetary constraints for the next three years.
This means that under current rules, Jeremy Corbyn’s newly formed minority Labour Goverment will have its hands tied with regard to expenditure in its own budgets for the next two years.
Designed to give long term economic stability, over short term populism, the Parliamentary Medium Term Financial Plan has been criticised by the Labour left for not allowing the electorate to really make an immediate change in how the country is governed.
But the City welcomed the change, saying it introduced a measure of stability, and ensured that any change of government could not introduce any radical changes that broke with budgetary constraint.
Does this seem a little crazy to you? A new government constrained by the long term economic restrictions set out in law by its predecessor, and unable to make changes?
After Mrs May had received yet another defeat in the Commons, this time on a vote of no confidence, a general election was called.
However the dying days of the Conservative government had one trick up its sleep. They passed the Parliamentary Medium Term Financial Plan. With wider remit than a budget, this imposes budgetary constraints for the next three years.
This means that under current rules, Jeremy Corbyn’s newly formed minority Labour Goverment will have its hands tied with regard to expenditure in its own budgets for the next two years.
Designed to give long term economic stability, over short term populism, the Parliamentary Medium Term Financial Plan has been criticised by the Labour left for not allowing the electorate to really make an immediate change in how the country is governed.
But the City welcomed the change, saying it introduced a measure of stability, and ensured that any change of government could not introduce any radical changes that broke with budgetary constraint.
Does this seem a little crazy to you? A new government constrained by the long term economic restrictions set out in law by its predecessor, and unable to make changes?
And yet that is precisely the situation in the Channel Island of Jersey, where a change of leadership in May 2018 saw a new Chief Minister and a very different Council of Ministers
But they have to fit any new budget for both November 2018 and November 2019 within the constraints of just such legislation – the Medium Term Financial Plan which was set up by the last government.
Does this seem a little crazy to you?
Does this seem a little crazy to you?
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