UK Weekly: Defence spending, tariffs and interest rate cuts

Germany’s ability to announce a larger increase in defence spending and fund it by additional borrowing rather than spending cuts elsewhere shines yet another light on the UK’s tight fiscal position ahead of the fiscal update at the end of this month. At least some of any further increases in UK defence spending may therefore need to be paid for by higher taxes. Meanwhile, while US trade policy may be uncertain, the direction of travel for UK interest rates appears clearer.

We will be previewing the Chancellor’s upcoming fiscal update in a 20-minute online Drop-In at 3pm GMT on Wednesday 12th March. (Register here.)