Andy Haldane warns Budget ‘speculation’ has hit economy

Andy Haldane, of Guiseley, said “costly” speculation about tax rises had caused growth to “flatline” in recent months.

The Chancellor has pledged to “grip the cost of living” in her Budget, which will be delivered on Wednesday.

But at the same time, Ms Reeves is widely expected to raise taxes in an effort to bridge a multi-billion-pound gap in her spending plans.

Speaking on the BBC’s Sunday With Laura Kuenssberg show, Mr Haldane said: “We’ve had month upon month of speculation – fiscal fandango, basically.

“And that’s been costly for the economy.

“It’s caused paralysis among business and consumers.

“It’s the single biggest reason why growth has flatlined, it’s been grounded in the second half of the year.”

Mr Haldane urged Ms Reeves to use her Budget to deliver “decisive action that puts to bed and beyond reproach any notion of further tax rises”.

Earlier this week, Mr Haldane told Sky News’s Mornings With Ridge And Frost that the build-up ahead Budget had been a “circus” and called for the process to be overhauled to prevent leaks that can damage the economy.