Dharshini David: Healey buys himself some time, but big questions still unanswered
Source: BBC ·
The chancellor talked of charting a new course for Britain, but the impact of Iran war has limited his options.
From the source
While earnings are rising, forecasters predict that is not compensating for higher prices and taxes John Healey talked of charting a new course for Britain, but this Budget was more about course-correcting than charging down a new path. It was abundantly clear that the financial fallout from that conflict in the Middle East has hampered the finances of households and businesses – and the government's ability to help. While the government targeted those impacted by higher energy and fuel bills, the "breathing space" it aimed to provide was limited; it is a pill that doesn't fully alleviate the pain. The most telling evidence was that official forecasters predict that while earnings will rise, that is not compensating for higher prices and taxes. Even after the extra help is taken into account, households' incomes after inflation and tax are set to be typically lower across the next two years than the start of the parliament, a sign of how much the war has blown prosperity off course.…
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