Trump tariffs could knock economic growth despite Budget boost, says think tank

The Government said in October that it planned to increase spending by around £70 billion a year, supported by increased borrowing and higher business taxes (Anthony Devlin/PA) - (PA Wire)

The Government’s Budget spending plans are expected to provide a “temporary boost” to economic growth although this could be dragged by Trump tariffs, an economic think tank has said.

Inflation is also predicted to have accelerated at the start of this year, putting continued pressure on budgets, according to the National Institute of Economic and Social Research (Niesr).