UK economy: Where is the growth in this Budget?

Published On Oct 30, 2024, 1:36 PM

UK Chancellor Rachel Reeves announced a substantial budget aimed at growth, but most independent forecasts suggest it will not significantly boost the economy in the medium term. Key proposals include a rise in National Insurance for employers, which may dampen disposable income and private investment. The budget entails an increase in spending by £70 billion a year and significant tax hikes intended to fund public services, particularly in healthcare, but it might also be seen as a burden on job growth. The markets showed a mild reaction with a slight increase in government borrowing interest rates.