UK Faces Grim Economic Future, Think Tanks Warn

The next government will need to navigate severe fiscal challenges, including high debt and slow growth, amid pressures from the pandemic and geopolitical tensions.

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.