Concerns are mounting over the potential economic repercussions of UK Chancellor Jeremy Hunt's proposed tax cuts in the upcoming March 6 budget, as warned by Bloomberg Economics and a senior economist. Analysts, including PhilAldrick, caution that these cuts could inadvertently drive up mortgage rates by fueling market expectations of inflation, reversing recent falls in market rates. This financial strategy is seen as a gamble ahead of an election expected later this year, amid fears of unsustainable borrowing and the UK's possible slip into recession at the end of 2023. The political implications of entering a recession are significant, with Labour and the press likely to seize on the situation, although policymakers are already focusing on signs of economic recovery.
UK chancellor Jeremy Hunt is considering slashing billions of pounds from public spending plans to fund pre-election tax cuts if he is penned in by tight finances in his March 6 Budget https://t.co/8ye8fJfmqo https://t.co/25bbV2dnEb
Always fun to see a Telegraph scribe writing about Britain's economic plight without mentioning the B-word stinking up the room. His own graph shows the recovery in real wage growth suddenly stalling in 2016. Good points otherwise but stop pretending. https://t.co/inNETh6PTk
Britain's economy might well have fallen into recession late last year, money has exited UK stocks and fears about unsustainable borrowing that have resurfaced ahead of a March 6 budget may stick until an election expected later this year. More here: https://t.co/zUD881VTMZ
Hunt warned that UK tax cuts risk increasing mortgage rates https://t.co/M9sWASS6GV
Budget tax cuts could raise mortgage rates, senior economist warns Jeremy Hunt https://t.co/gaxjVcAcH5 #tax #mortgage
Hunt needs to be careful that any budget tax cuts don't backfire by driving up mortgage rates as markets anticipate another bout of inflation. Those market rate falls are already reversing https://t.co/48c0AxA6yt
UK budget tax cuts could backfire by driving up mortgage rates https://t.co/h45SM3KFvE via @PhilAldrick https://t.co/7QZVEsc3Du
UK budget tax cuts could backfire on UK Chancellor Jeremy Hunt by driving up mortgage rates, warns Bloomberg Economics https://t.co/n59tz3dNhh
Reminder that whether the UK slipped into #recession or not at the end of 2023 has far more political significance than economic... Labour (and the press) will make hay with the 'R-word', but policymakers have already moved on to the signs of a pick up. https://t.co/8rC6xYbzbC