Hunt’s £21 Billion Stimulus for UK Sparks Concern on Inflation

Chancellor of the Exchequer Jeremy Hunt will provide a £21 billion ($26.2 billion) stimulus to the UK economy in the run-up to the next election, threatening to fuel inflation and prompt the Bank of England to keep interest rates in painfully high territory.

The Office for Budget Responsibility said the measures set out by Hunt on Wednesday will boost the economy by an average of just under 0.3% between the fiscal years ending March 2025 and 2029. The fiscal watchdog also has a more pessimistic outlook for inflation and for the UK economy’s potential growth rate than it did in ...