Chancellor Rachel Reeves faces the challenge of addressing a £22bn black hole while pledging to end austerity and boost growth without hefty tax hikes.
The UK government intends to stick to fiscal rules that require the total debt to decrease within five years, maintaining credibility with financial markets.
The credibility of fiscal rules affects borrowing costs; losing that credibility can lead to a surge in costs, as was evident in Liz Truss's 2022 mini-Budget.
Ahead of the general election, Reeves aims to replicate her predecessor's fiscal rules while finding ways to limit the scale of necessary tax increases.
Collection
[
|
...
]