Go back

Budget failed to join the dots on key challenges


Chancellor missed a chance to link innovation, net zero and levelling up, says Anna Valero

Chancellor Rishi Sunak’s autumn budget painted an upbeat view of the economy. Improved forecasts have left the Treasury with more money than expected. The decision to spend rather than cut taxes should help to repair public services that were under strain even before the pandemic.

But the UK needs to take stock of its challenges. The Office for Budget Responsibility predicts that the pandemic and Brexit will reduce long-term output by 2 per cent and 4 per cent, respectively. Productivity has been weak for over a decade, and growth is forecast to be just 1.3 per cent in 2024 after the initial rebound from Covid-19. Restoring productivity growth is the only way to sustainably raise living standards and avoid the threat of an inflationary spiral.

This article is only available to Research Professional News subscribers. If you are a subscriber you can read the article in full on researchprofessional.com

Pivot-RP users can log in and view the article via this link.