Fiscal Rules OK? The Straitjacket of Austerity

Fiscal Rules OK? The Straitjacket of Austerity

Behind every headline about “fiscal headroom” and “black holes in the public finances” lies a story about power — and how economic rules are used to restrict democratic choices.

Political Economist William Thomson will dig into the UK and the EU's fiscal framework, exposing how so-called “fiscal responsibility” has been weaponised to lock in austerity and limit social investment. The UK’s fiscal rules, from Gordon Brown’s 1997 model to Labour’s current targets, are designed to constrain government spending under the guise of economic prudence. They’re not laws of nature, but political tools that prioritise market approval over public wellbeing. And with Westminster’s unique welfare cap — the only one of its kind in the world — the UK government has hardwired inequality into its own budget process, ensuring that when cuts come, they fall first and hardest on those most in need.

Emma Holten, Author of 'Deficit: How Feminist Economics Can Change Our World' will use a feminist economics lens to expose the impact of austerity on woman and other minorities. Emma will detail how fiscal rules tear apart the Care Economy. 

This conversation will unpack how fiscal rules have become one of the most powerful instruments of neoliberal control — presented as technical necessities while serving clear ideological goals. From the IMF’s global spread of spending caps to the OBR’s quiet enforcement of balanced-budget orthodoxy, we’ll explore how these self-imposed limits make progressive policy nearly impossible. Featuring examples from across the UK and Europe, this session will show why “fiscal headroom” is a political construct, not an economic fact — and how understanding the machinery of fiscal rules is the first step in dismantling them.

GENERAL ADMISSION £8.