The Story Why is Britain broke?
Aug 10, 2025
Mehreen Khan, the Economics editor at The Times, dives deep into Britain's financial woes and the potential for new tax hikes in light of budgetary challenges. With inflation rampant and growth stagnant, she critiques the government's approach to welfare and fiscal management. The discussion highlights the urgent need for innovative solutions to tackle a projected £50 billion deficit while addressing public sentiment. Mehreen also explores the implications of wealth taxes and the necessity for courageous political actions to secure a stable economic future.
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Oat Milk Price Shows Food Inflation Bite
- Mehreen Khan gives a personal example: her oat milk rose from £1.80 to £2.20 and stayed there.
- She uses this to show how food-price rises hit everyday household budgets.
UK Inflation Looks Anomalous
- Mehreen Khan notes UK inflation looks like an outlier versus most European peers.
- She highlights inflation's persistence as a unique UK problem to watch.
Fiscal Rules Are Primarily Signalling Tools
- Mehreen Khan argues fiscal rules function mainly as signalling devices to preserve market trust.
- She says markets care more that rules are met than their exact technicalities.