Troubled times lie ahead for the next UK government! It is braced for major challenges, for instance, replenishing the government budget. Such an alarming budget deficit has not been recorded since the 1950s. This issue arouses great concerns of British experts at the Institute for Fiscal Studies.
Analysts note that whoever wins the general elections in July 2024 will have to tackle swelling national debt, deal with high interest rates, and prop up falling GDP growth rates. According to Paul Johnson, director of the Institute for Fiscal Studies, the government will have to choose from three options to address this bunch of problems: to "painfully" cut spending on public services, to raise taxes, which have already reached an 80-year high, or to resort to new government loans.
After the Brexit referendum, the British economy has been struggling against tough challenges. The authorities have not been able to contain rampant inflation yet. Besides, a shortage of drivers popped up after the COVID-19 pandemic, when many of them left Great Britain.
