GDP growth resulting from Mini Budget policies will be squeezed out by higher interest rates from the Bank of England in an attempt to control inflation, economic think-tanks told the Treasury Select Committee yesterday (22 September).
Chancellor Kwasi Kwarteng is set to announce a fiscal statement, or Mini Budget, at 9.30am today (23 September), where he is expected to unveil a package of tax cuts to promote economic growth, as well as how it will pay for an energy price guarantee for households and businesses. Speaking to MPs in Parliament, Torsten Bell, chief executive of the Resolution Foundation, a think-tank, said that given the large scale of the fiscal policy plans, GDP will "almost certainly be higher this winter than it would otherwise have been". Mini Budget 22: Treasury warned that spending support coul...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
