Narratives matter in economics, and we must acknowledge the circumstances the government faces and give credit where due

Given the tone and content of much of the coverage in the British press, you would be forgiven for thinking that the Labour government’s first budget in 14 years was a bust, and that is putting it nicely. Yet this is more than unfair. It obfuscates four important aspects of the budget, sidelines three lessons for the future and undermines today’s good news from the Bank of England.

In the run-up to the budget on 30 October, I was among those warning that the announcements from the chancellor, Rachel Reeves, would “please almost no one” and that they should not be assessed “according to their ability to meet all the demands that have been placed on them”.