U.K. Budget Watchdog Says Sunak May Struggle to End Covid Costs
- Budget lacked provision for ongoing Covid costs, OBR says
- Charlie Bean says it’s implausible to expect consumer splurge
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Britain’s fiscal policy watchdog raised fresh doubts about whether Chancellor of the Exchequer Rishi Sunak will be able to keep to his spending plans.
The Treasury’s budget last week set aside no resources beyond next March to cover Covid-related costs such as re-vaccination and test-and-trace programs. The risk is that those expenses will persist, forcing Sunak to raise taxes in order to rein in the budget deficit.