UK Budget: Tax, borrow and spend

Our Focus report on the UK budget argues that it will not improve Britain's mediocre economic growth prospects. Higher government investment is welcome but the resulting higher interest rates as well as higher taxes on capital and businesses will discourage private investment. Gilt yields have risen primarily because the Budget boosts economic growth and inflation in the short run, though it also implies a higher path for debt. But this Budget does not compare with the Liz Truss debacle. That said, despite the extra tax and borrowing, Labour will struggle to meet expectations for improved government services which carries long-term risks for the public finances. For a copy please email Info@Tricio-Advisors.com