Aftermath of BREXIT Vote - Impact on UK Economy

The video discusses the UK's fiscal policy, focusing on the budget surplus goal and its challenges. It highlights the impact of Brexit on fiscal rules and the potential end of austerity measures. The Chancellor's plans to eliminate the budget deficit through spending cuts and tax increases are examined, along with the implications of these policies on the economy.

What is the main challenge mentioned in maintaining fiscal credibility?

• Increasing the deficit

• Reducing taxes

• Achieving a budget surplus

• Increasing government spending

What does the surplus rule aim to achieve by 2019-20?

• Increase in government borrowing

• Reduction in government spending

• A budget surplus

• Higher taxes

How did government deficits change after the financial crisis?

• They decreased significantly

• They remained stable

• They were eliminated

• They increased significantly

What uncertainty is discussed regarding future austerity measures?

• Whether austerity will increase

• Whether austerity will end

• Whether spending will increase

• Whether taxes will be reduced

What flexibility does the Chancellor have in terms of policy changes?

• Increasing taxes

• Undoing planned austerity

• Reducing spending

• Increasing the deficit