NIESR Predicts Labour's First Budget

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Post on Oct 28, 2024

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NIESR's Predictions for Labour's First Budget: Will it be a Game Changer?

So, Labour's in power, the dust has settled, and now it's budget time. Everyone's holding their breath, wondering what Chancellor Rachel Reeves has up her sleeve. Will it be a radical shake-up, a gentle nudge, or something completely unexpected?

The National Institute of Economic and Social Research (NIESR) has some thoughts on the matter. They've crunched the numbers and put together their predictions for Labour's first budget. And let's just say, it's not all sunshine and rainbows.

The NIESR's Predictions: A Mixed Bag

The NIESR's report paints a picture of an economy facing headwinds. They see a challenging global outlook with inflation still stubbornly high. They're not exactly predicting doom and gloom, but they are suggesting some tough choices for the Chancellor.

Here's the gist of the NIESR's predictions:

• Growth Slowdown: The NIESR predicts that the UK economy will grow by just 0.5% in 2024. This is a significant slowdown from the 0.9% growth they projected in 2023.
• Public Spending Squeeze: The NIESR expects Labour to face significant pressure on public spending. This is due to the legacy of high inflation and the need to address the growing NHS waiting list.
• Tax Hikes? To help balance the books, the NIESR thinks Labour might have to raise taxes. This could be through a combination of higher income tax rates, corporation tax, and/or a windfall tax on energy companies.
• Green Investments: Despite the economic headwinds, the NIESR believes Labour will stick to their commitment to invest in green technology.

What it Means for You

So, what does all this mean for you? Well, if the NIESR is right, you might see a slow economy, higher taxes, and more pressure on public services. But, it's also possible that Labour will be able to manage the economy effectively and deliver on their key promises.

It's all a big question mark at this point. Only time will tell how Labour's first budget will play out. One thing's for sure though: this is going to be a budget that everyone's watching closely.

Remember, these are just predictions. It's always wise to take them with a grain of salt and keep an eye on the actual budget announcement.