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Think Tank Puts £8.2bn Price on Government U-Turns, Presses for Bold Economic Reforms

The Resolution Foundation says repeated reversals have driven policy uncertainty to its highest level since 1997.

Overview

  • The assessment, based on OBR data, totals £8.2bn this parliament and excludes fresh reversals on pub business rates (~£300m) and farmers’ inheritance tax (~£130m).
  • The report finds UK GDP per head has slipped to parity with Italy and sits about 15% behind a group of comparable economies.
  • After adjusting official employment figures, the think tank estimates productivity rose 3.1% in the year to Q3 2025.
  • Researchers urge action on planning and housebuilding, closer trade alignment with the EU, and targeted help to bring more young and older people into work.
  • Rachel Reeves is drawing up support for roughly 5,000 pubs hit by doubled rates as industry groups press for wider relief across hospitality.