Why everyone is over-reacting to the mini-Budget

Most analyses of the chancellor’s mini-Budget speech have failed to grasp its purpose and significance, says Max King

John Major
John Major fixed the public finances – but still got voted out
(Image credit: © JOHNNY EGGITT/AFP via Getty Images)

In the rush to publish and pontificate, media analyses of Budgets are, inevitably, simplistic, shallow and populist. They are often governed by consensus group-think and politically influenced. The interviews with “ordinary people” are designed to support the narrative. Some economists may try to counter misconceptions, but their points are usually ignored and forgotten.

Commentary on last week’s “mini-Budget” contained more misconceptions than most, which may be a positive sign. One former chancellor observed that Budgets which look good on Budget day quickly unravel, while those that attract the most opprobrium stand the test of time.

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Max King
Investment Writer

Max has an Economics degree from the University of Cambridge and is a chartered accountant. He worked at Investec Asset Management for 12 years, managing multi-asset funds investing in internally and externally managed funds, including investment trusts. This included a fund of investment trusts which grew to £120m+. Max has managed ten investment trusts (winning many awards) and sat on the boards of three trusts – two directorships are still active.

After 39 years in financial services, including 30 as a professional fund manager, Max took semi-retirement in 2017. Max has been a MoneyWeek columnist since 2016 writing about investment funds and more generally on markets online, plus occasional opinion pieces. He also writes for the Investment Trust Handbook each year and has contributed to The Daily Telegraph and other publications. See here for details of current investments held by Max.