Healey's Budget needs to sustain the stronger economy through gathering clouds
Summary
The article says the UK economy has grown faster than expected this year, but rising inflation and higher-than-forecast borrowing pose challenges ahead of the Budget. Chancellor John Healey must present credible growth and cost-of-living plans while reassuring investors that the government will control borrowing.Key Facts
- UK GDP grew 0.6% in the first quarter and 0.5% in the second quarter, according to the article.
- The article says third-quarter growth is on track to reach 0.6% to 0.8%.
- The International Monetary Fund praised the UK for standing out among G7 countries in its plans to cut borrowing.
- Inflation rose to 3.5% in September, more than forecast.
- Government borrowing was also higher than forecast, and the article says a Bank of England interest-rate increase is a strong possibility.
- The article says investors have shifted some attention from UK borrowing costs to the gap between French and German borrowing costs and the US debt outlook.
- Healey's team has tightly restricted access to Budget plans to limit leaks.
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