A tough fiscal reality awaits new government

A tough fiscal reality awaits new government

Key Takeaways

  • The international macro backdrop is improving; US interest rate cuts have been revived and the ECB has trimmed rates.

  • In the UK, a strong GDP number in Q1 was revised up last week.

  • Longer-term, the outlook for UK budget finances remains distinctly gloomy, however.

  • A new government will have to raise taxes and the focus is likely to be on capital taxes.

  • Detailed discussions with the treasury and the office for budget responsibility await.

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Steven Bell
Steven Bell
Chief Economist, EMEA

Steven Bell is a Managing Director, responsible for providing macro strategy input to a broader range of multi asset investment portfolios. He joined Columbia Threadneedle through the acquisition of BMO GAM (EMEA) in 2021, having previously been with BMO since 2013. He joined the group having run the GLC’s Global Macro programme for the previous seven years. Before that he was Global Chief Economist and Investment Head of the UK multi asset business at Deutsche Asset Management during his tenure 1984 – 2005. Steven began his career as an Economic Adviser at the UK Treasury and has degrees in economics from the London School of Economics and Stanford University, California.

Steven Bell

Key topics

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