That decision probably won’t have great consequences – although it does raise questions of consistency, since as the blog article points out, the Prime Minister and Chancellor have long made the point that Labour didn’t “fix the roof while the sun was shining” back before the financial crisis.
The point it makes though is that weak oppositions, as Labour is currently providing to the Conservatives, allow potentially lazy, or complacent decisions to be made, which could have economic consequences.
I’d highly recommend the Political Betting blog that this article was motivated by; it’s a very interesting take on politics from the perspective of people who regularly place bets on political outcomes. The placing of bets is an economic decision, and many argue it’s an effective way of forcing rigorous thinking: if one’s money is at stake, one will be more conscious of potential biases that would result in betting losses.
The Spending Review happens at the start of each Parliament, hence the last one was back in 2010, and it sets out the budgets for each department, or part of the government.
The Autumn Statement is the Autumn counterpart to the Budget, which happens each March, and hence is an annual event where the Chancellor updates plans for government taxation and spending.
There’s little doubt that as we get nearer to these events, they’ll get more and more media attention, not least after the tax credits fiasco, so it’s always good to be prepared to think about them as economists by discussing them, as economists.