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Mar 12 2020, 08:10 GMT
Yesterday’s UK Budget giveaway was the largest since 1992, with £30bn (or 1.4% of GDP) of spending and tax cuts – leading to a deficit of 2.8% of GDP in 2021. The Office for Budget Responsibility (OBR) expects this ‘sugar rush’ to push UK GDP growth up to 1.8% in 2021, falling back thereafter. The big picture is that Boris Johnson is prepared to run large deficits to fund investment in an effort to ‘level-up’ the UK and retain Northern ‘red-wall’ seats he won in the election.