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Has the shift in fiscal policy altered the UK’s prospects?

In view of the wider interest, we are also sending this Long Run Update to clients of our UK Economics Service.

If the UK government’s “new era of fiscal policy” boosts GDP growth as planned, the UK’s long-term prospects will be much improved. But the action announced so far will not achieve this. It is even possible that, by denting the UK’s fiscal credibility, it worsens growth prospects over the next decade or so.

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