UK faces ‘very difficult trade-offs’ in budget because of Iran war, say analysts

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Andy Burnham has been warned by a leading thinktank of “very difficult trade-offs in the next autumn budget” if the Iran war keeps oil prices and inflation high. The National Institute of Economic and Social Research (NIESR) said the new prime minister faced a “challenging inheritance” and his plans to revamp public services would meet severe pressure from persistently higher prices. With oil prices having briefly gone back above $100 a barrel, and the strait of Hormuz all but closed since March, the thinktank said it expected inflation to rise to 3.8% over the next seven months, forcing the chancellor, John Healey, to find an extra £24bn by the end…

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