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1 November 2024
< 1 min
October’s UK Budget represented what may be one of the largest increases in spending, tax, and borrowing of any fiscal event in history.
Spending policies will add a colossal 2.2% a year of GDP or £69.5bn - £45bn on current spending and £24bn on capital spending. This will be funded by £40bn of extra taxes per year, the most since Chancellor Norman Lamont raised taxes in his 1993 Budget, after Britain was ejected from the European Exchange Rate mechanism.
Join Guy Monson, Chief Market Strategist, as he discusses the implications for the gilt market. With the UK economy already performing relatively well in the months before the Budget, why did Chancellor Reeves adopt such a fundamental switch back to ‘big state’ economics?