Britain is on 'thin ice,' warns ex-Bank of England chief economist -- and it must act to 'appease financial markets'

Britain is “on thin ice” ahead of its Autumn Budget, according to former Bank of England chief economist Andy Haldane, who warned the government risks worsening market and economic conditions if fiscal restraint isn’t clear. Haldane said the Oct. 28 budget could face “perils” as the U.K. deals with higher, stickier inflation and weaker, sticky growth, and has yet to balance the books this century. The most effective step, he told CNBC, is to “appease financial markets” by taking action to curb public spending rather than relying on painful tax hikes. He singled out welfare as a key issue for Labour.