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UK's Fiscal Goals at Risk Amid Slashed Growth Projections

5/8/2025

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Summary

Story summary

The National Institute of Economic and Social Research (NIESR) cautions that UK Chancellor Rachel Reeves may fall short of her fiscal goals, with GDP growth projections slashed to 1.2% for 2025. This disappointing outlook could force tough decisions ahead, including potential tax increases or spending reductions, as inflation is anticipated to hover around 3.3%.

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Story summary

The National Institute of Economic and Social Research (NIESR) cautions that UK Chancellor Rachel Reeves may fall short of her fiscal goals, with GDP growth projections slashed to 1.2% for 2025. This disappointing outlook could force tough decisions ahead, including potential tax increases or spending reductions, as inflation is anticipated to hover around 3.3%.