“[The incoming Chancellor] /[Shabana Mahmoud] could face pressure to loosen purse strings, but sticking to existing fiscal rules means more tax revenues or spending cuts may be needed.
“Borrowing for the first three months of the current financial year 2026-27 was almost [£10bn] more than last year, running well ahead of the OBR’s March forecasts. Immediate action on the cost of living could further strain public finances.
“With tax rises a possibility in the upcoming Autumn Budget, businesses may face another period of uncertainty as the Government weighs potential revenue sources against their economic impacts.”
