IFS warns UK budget risks being 'work of fiction' without plan for £35bn spending gap
The Institute for Fiscal Studies warns that the UK chancellor's upcoming budget lacks a credible plan to address £35bn in spending pressures, exacerbated by higher inflation and Middle East conflict rattling public finances. The IFS urges immediate decisions to avoid deep real-terms cuts by decade's end. This raises uncertainty over UK fiscal policy and potential tax or spending adjustments.
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Russia — 308 developments
UK Fiscal Gap: £35bn Shortfall Amid Economic Headwinds and Geopolitical Risk
The UK faces a confirmed £35bn fiscal gap, requiring significant tax rises or spending cuts to meet existing commitments. Chancellor Healey acknowledges economic headwinds and signals fiscal restraint, but specific measures remain unannounced. Geopolitical developments, including the Russia-Ukraine conflict and Middle East instability, are exacerbating inflationary pressures and complicating budget planning.