UK government may be forced to cut spending
Labour may be forced to slash spending to salvage 'really unhealthy' UK economy from Iran war stagflation shock.
Britain's economy is particularly exposed, economist David Lubin argued, already in a 'really unhealthy' shape with sticky inflation and decades of weak growth behind it.
With further tax rises risking what Lubin called a 'catastrophic decline in economic activity', the government may have little choice but to swing the axe on spending, forcing a politically difficult shift in Labour's economic stance.
'It may well be that UK political debate is forced into acknowledging the need for public expenditure control,' the economist said.
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