Skip to main content
Budget will create short-term growth, higher inflation and lower wages, economists say

CHANCELLOR Rachel Reeves’s Budget will create short-term economic growth at the cost of higher inflation and lower wages, researchers say.

An increase in government spending will see growth shoot up to 1.3 per cent in 2025 before falling slightly to 1.2 per cent in 2026, said a think tank report published today.

The boost, however, may only be short term and is likely to reduce growth in the future, warned the University of Strathclyde’s Fraser of Allander Institute.

Support the Morning Star
You have reached the free limit.
Subscribe to continue reading.
More from this author
Britain / 14 March 2025
14 March 2025
RCN warns nurses are leaving the NHS due to shocking levels of racist abuse and understaffing
Similar stories
Britain / 10 March 2025
10 March 2025
Campaigners say Labour's cost-cutting welfare reforms are unlikely to improve skyrocketing cost of work-related ill-health