The Iran War's Shadow Over Britain's Budget The latest analysis from the National Institute of Economic and Social Research (NIESR) paints a stark picture: the UK government is facing a perfect storm of economic pressures due to the ongoing conflict in the Middle East.
As new Prime Minister Andy Burnham navigates his first budget, he will be forced to make some very difficult choices. The NIESR's forecast is clear: inflation is set to rise to 3.
8% over the next seven months, forcing Chancellor John Healey to find an extra £24 billion by the end of the decade to maintain services and real terms welfare payments.