Chancellor Rishi Sunak delivered a “sobering picture” of the UK economy in his one-year Spending Review, with Covid-19 leaving “long lasting” scars, according to industry commentators, who predict that this further round of spending will need to be paid for through higher taxation.
"The Chancellor spelt out quite clearly the extreme damage that has been done to the economy; the numbers are frightening," Neil Birrell, CIO at Premier Miton Investors, said. Sunak confirmed to the House of Commons earlier today (25 November) that the Office for Budget Responsibility (OBR) has forecast the economy will contract by 11.3% this year - the biggest decline in 300 years - rising to 5.5% next year. "After the forecast bounce next year and in 2022, growth will fall back again just over 2%, then back below 2% for the next two years," Birrell said. "This illustrates that the s...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
