The chasm between the recent big changes in the world order and the small changes in UK fiscal policy announced by the Chancellor yesterday can’t persist for long. And it’s hard to see how the gap can be closed without higher taxes for UK households.
When the Chancellor, Rachel Reeves, yesterday said during her Spring Statement that the “world is changing before our eyes” she was referring to the need for Europe to defend itself. But she was silent on how the UK was going to pay for it.
