UK Budget Expected to Boost Economic Growth

Chancellor Rachel Reeves is set to announce her first Budget on October 30, which is anticipated to include £35 billion in tax hikes to fund £57 billion in public spending and address a £22 billion increase in government borrowing. Bank of America predicts this approach could boost UK economic growth by approximately 0.7% relative to GDP. Meanwhile, the International Monetary Fund (IMF) has upgraded the UK's growth forecast to 1.1% for 2024, attributing this to improvements in inflation management. However, concerns remain regarding the impact of tax increases, particularly national insurance, on larger employers like Marks & Spencer. Reeves acknowledged the ongoing challenges, emphasizing the need for fundamental economic re-engineering rather than relying solely on tax hikes. Overall, the Budget is being positioned as a critical step towards long-term economic stability and growth.