17 March | Other

UK budget deficit may exceed 5 billion dollars: Resolution Foundation

UK budget deficit may exceed 5 billion dollars: Resolution Foundation

According to experts of the Resolution Foundation think tank, UK Finance Minister Rachel Reeves may fail to meet the budget adopted for the current year. The expected deficit could amount to 4.4 billion pounds ($5.7 billion).

Analysts at the organization have called on Reeves to handle any cuts to social security spending with caution. The cuts are expected to be the subject of her budget update speech on March 26. Instead of reducing spending, the organization's analysts believe tax increases would be more appropriate.

According to James Smith, director of research at the Resolution Foundation, the UK's economic outlook has deteriorated significantly since the budget was passed last fall. In his opinion, weakening GDP growth and rising interest rates will lead to a shift in the budget balance from the current surplus to a deficit of about 5 billion pounds.

Reuters reports that Britain's Office for Budget Responsibility is planning to drastically cut its forecast for the country's economic growth for 2025, now estimated at 2.0%. Last month, the Bank of England lowered its forecast to 0.75%. The Resolution Foundation is forecasting a similar figure.

Elena Dorohina MarketCheese
Period: 27.05.2025 Expectation: 50000 pips
Buying BTCUSD amid growing institutional adoption with target 110,000
Today at 12:21 PM 4
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
1st in the segments "Metals" and "Oil and gas"
Period: 30.05.2025 Expectation: 5000 pips
Tesla shares correct after explosive gains
Today at 08:25 AM 13
Period: 22.05.2025 Expectation: 600 pips
AUDUSD will grow to 0.64900 amid US rating downgrade
Today at 08:20 AM 10
Gold buy
Period: 23.05.2025 Expectation: 6000 pips
US credit downgrade would send gold to 3290
Yesterday at 11:09 AM 115
Period: 26.05.2025 Expectation: 3000 pips
Fundamental factors constrain SPX's growth potential
Yesterday at 08:27 AM 47
Elizabeth_Kuzmicheva
Elizabeth_Kuzmicheva

Listed among the best MarketCheese authors
1st in the segments "Metals" and "Oil and gas"
Period: 23.05.2025 Expectation: 700 pips
Silver will drop to 31.7 amid de-escalation of US-China relations
Yesterday at 07:55 AM 27
Go to forecasts