The National Institute for Economic and Social Research released a report overnight into the UK’s domestic economic conditions. Not pretty…
The respected research institute – the oldest in the UK – blames Reeves’ tax rises “are playing a more dominant role” than Trump’s tariff announcements when it comes to economic weakness, and placed particular blame on the NICs hike, which “leaves the budget — and the UK economy as a whole — in a risky and vulnerable position. This is especially true given the downside risks posed by the global trade war and heightened geopolitical tensions; now is not the best time to take a gamble.” Some other points the report makes:
Niesr adds that the fiscal rules will leave Reeves no option but to raise taxes to boost her ‘headroom,’ which is damaging business confidence. It concludes the budget’s tax rises leave the economy “risky and vulnerable.” A growing chorus of voices against Reeves here…
Speaking at his speech on how to achieve “progressive capitalism” Wes Streeting fired a dig and Andy Burnham:
“Bond markets are not bond villains and fiscal rules matter.”