During today's budget announcement Chancellor Sunak indicated he was optimistic on unemployment and stated that GDP growth has been revised positively by the OBR from 4% to 6.5% while warning that inflation could persist at a rate of over 4%. In addition, he stressed the importance of preparing for the possibility of a future crisis and the potential need to act to tackle inflation in the short term as it could continue to be an issue for several months. Furthermore, the chancellor said that day-to-day spending would be funded from taxation and not from borrowing, highlighting that underlying public debt as a percentage of gross domestic product must fall. Today's budget announcement could play a key part in reassuring investors and consumers about a wide variety of issues but could also lead to some doubts regarding the feasibility of implementing it.
UK Budget Announcement - Commentary
