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Originally Posted by Damien
I think growth might well have been, and would be, higher right now if we hadn't departed.
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Yup, the UK is the only G7 country not to have returned to its pre-Covid economy size. As per the
FT video, we're looking at a £40bn tax hit every year. We need to fill this gap somehow through lower spending or higher taxes or both or find someway of reducing the gap.
What Hunt also needs to cover is the increased borrowing costs that the mini budget has left us with. Yes, he's undone most of the mini budget but the markets's confidence in the UK has reduced leading to higher interest rates, as Peston explains.
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The point is that the mini-budget has increased the hole in the public finances by more than the direct impact of the mini-budget’s unfunded tax increases.
By undermining investors’ confidence in the government’s economic competence, the mini-budget increased the relative interest rate the government has to pay to borrow - and that caused an indirect but significant deepening of the hole in the public finances.
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https://www.itv.com/news/2022-10-19/...uss-cannot-fix