IFS: Lib Dems determined to shake up economic status quo

EMBARGO: 00.01 Thursday 19 February 2026

Responding to the IFS's proposals for a set of fiscal "traffic lights" to replace the fiscal rules, Liberal Democrat Treasury Spokesperson Daisy Cooper MP said: 

"The economic status quo isn’t working and we’re determined to shake it up.

"For too long, short-term Treasury tax grabs have trumped long-term decisions that would deliver real economic growth. That's why we Liberal Democrats have pledged to break up the Treasury and create a new powerful Department for Growth, which would be responsible for setting the fiscal framework. 

"Alongside our plan for a new Department for Growth, the IFS's idea of replacing hard and fast fiscal rules with fiscal traffic lights could help turn what is too often a fiscal straitjacket into a broader and more credible long term fiscal framework.

"This could also help end the facade of fiscal rules being conveniently tied to political cycles, where fake promises of “jam tomorrow” under the Conservatives and now under Labour, has eroded trust in politics time and time again."

ENDS