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Government support tempers recession before consolidation stabilises public debt

Over £100 billion of additional fiscal support over the next two years cushions the blow of higher energy prices – but the economy still falls into recession and living standards fall 7 per cent over two years, wiping out eight years’ growth. Over the medium term, around £40 billion in tax rises and spending cuts – in roughly equal measure – offsets higher debt interest and welfare costs and gets debt falling as a share of GDP. But at 99 per cent of GDP at the forecast horizon, debt is roughly £400 billion higher than forecast in March and interest costs close to historic highs.

November 2022 Economic and fiscal outlook press briefing

Download Richard Hughes’ presentation slides and speaking notes on the November 2022 Economic and fiscal outlook or watch again on YouTube.

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