Experts foresee tax hikes
Experts are predicting that the upcoming Budget in the UK could see painful tax hikes as the country faces the risk of an economic "doom loop". This comes after borrowing hit £18 billion in December, the highest figure for the month in four years.
Pressure on Chancellor to act
Chancellor Rachel Reeves is under pressure to make tough decisions, with most experts expecting tax increases or spending cuts to address the economic challenges. Growth is slow, and the government's priority is to boost the economy.
Risk of economic 'doom loop'
Analysts warn that the UK could enter an economic "doom loop" if spending continues to be cut. The Office of Budget Responsibility is set to deliver its forecast in March, which could impact investment and spending in the country.
Positive outlook for the future
Despite the challenges, some experts are optimistic about the second half of the year, suggesting that the fiscal and growth outlook may improve in the coming months.
