Is the UK planning a surplus ‘straitjacket’?

The U.K. government is expected to commit to running a budget surplus under normal economic conditions, a move which has already come under attack by economists before it has even been announced.

The surplus commitment hit headlines in the U.K. ahead of its expected announcement by Chancellor of the Exchequer George Osborne at his flagship Mansion House speech Wednesday night, where he will appear alongside Governor of the Bank of England Mark Carney.

Many of the key announcements have already leaked out to the media, a frequent occurrence around this event.

For Osborne, this is his first big chance to make the most of his party’s unexpected trouncing of the opposition Labour Party in May’s general election. Without previous coalition partners the Liberal Democrats, the Conservative Chancellor can pursue more traditional policies as he aims to restore the U.K.’s budget to surplus by 2017-18. The commitment to surplus in normal economic conditions will be used to reinforce his party’s reputation for fiscal competence and its case for further spending cuts.

CNBC