The OBR warns that public debt will become unsustainable from the 2040s without policy changes. Rising costs of pensions, healthcare, and increased defense spending are key drivers. Early action is crucial to mitigate future adjustments.
Andy Burnham's potential chief economic adviser, Jim O'Neill, advocates for billions more in borrowing for infrastructure investment, suggesting an independent body similar to the OBR to reassure markets.
Ten years after Brexit, columnist Larry Elliott restates his leftwing case for leaving the EU, arguing Europe isn't working economically and Brexit offers an opportunity for Britain to pursue a different economic model.
Andy Burnham, Mayor of Greater Manchester, has enlisted three prominent economic advisors, including former Bank of England chief economist Andy Haldane, to bolster his fiscal credibility. This move precedes a potential return to Parliament via the Makerfield by-election and a possible challenge to Keir Starmer's leadership.
The UK government borrowed £132bn for the financial year ending March, falling £700m below the OBR's £132.7bn forecast. Chancellor Rachel Reeves' fiscal headroom of £23.6bn is now threatened by the Middle East conflict, with the Resolution Foundation warning it could deliver a £16bn hit to public finances by 2030, wiping out nearly three-quarters of her buffer.
