Politics · 29 July 2026
Rising inflation leaves Chancellor John Healey short of £24bn for his spending plans
Chris McAndrew via Wikimedia Commons (CC-BY-3.0)
Niesr, an economics think tank, expects inflation to reach 3.8% by early next year and erode official budgets. Researchers argue the Chancellor cannot rely on borrowing to fund his plans, forcing him to consider reforming property taxes or cutting welfare. The alert comes right before the Bank of England meets this Thursday to vote on changing interest rates.
Reported by City AM · How we write briefs