Overview

• Leading British economic think tanks warn of a bleak economic outlook for the UK, with the next government facing tough choices on tax and spending.
• The economic challenges are attributed to high debt levels, high interest payments, and muted economic growth, exacerbated by the coronavirus pandemic and the cost-of-living crisis following Russia's invasion of Ukraine.
• The Institute for Fiscal Studies and the Resolution Foundation highlight that stabilizing debt as a fraction of national income will require significant tax and spending adjustments.
• Both the Conservative and Labour parties have yet to outline how they will meet their policy objectives within the fiscal constraints.
• The upcoming general election, which must take place by January 2025 but could be as soon as May, adds urgency to addressing these economic challenges.