UK Week in Review - 31st October

Martin Beck, Chief Economist | Economic Consulting and Analysis

The UK economy - and housing market in particular - continue to defy the downbeat consensus, but that strength offers little protection from looming tax rises. With the OBR’s forecasts now on her desk, we think the Chancellor will raise income tax to plug a sizeable fiscal gap. The Budget may impose a deadweight on the economy, but it could also pave the way for earlier rate cuts if the Bank of England moves to offset the drag.