From Morningstar: 2024-10-23 04:27:02

UK Chancellor Rachel Reeves sympathizes with Cabinet colleagues amid reports of Prime Minister Keir Starmer facing backlash over potential budget cuts. Reeves emphasizes the need for constructive discussions to address financial challenges. No increase in major taxes for working people expected in the upcoming budget, despite the government looking to raise up to GBP40 billion through tax hikes and spending cuts.

Projections for UK economic growth in 2024 have been upgraded, while government borrowing for the financial year exceeds forecasts. Public sector net borrowing rises to £79.6 billion, higher than predicted, with a deficit of £16.6 billion last month. The International Monetary Fund suggests a faster GDP growth of 1.1% in 2024, up from a previous forecast of 0.7%.

Overall, challenging times lie ahead for the UK government as difficult decisions on welfare and taxation loom. Morningstar Investment Management LLC offers insights on the impact of economic fluctuations and inflation on investment decisions. Opinions expressed are subject to change, and readers are advised to consult financial professionals before making investment decisions.



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