UK faces £330bn fiscal challenge

The Resolution Foundation, a left-leaning think tank, published a report estimating that Britain's public finances are losing around £330 billion ($442 billion) per year due to weak economic growth, population ageing, and ill health. The report highlights the scale of the challenge facing incoming Prime Minister Andy Burnham, who is due to replace Keir Starmer on Monday. It recommends replacing the triple lock on state pensions with a less expensive link to average earnings, reforming fuel duty as drivers switch to electric cars, and increasing investment in public services to counter productivity decline. The report also notes that the impact of the Iran war has likely reduced the government's fiscal headroom from £23.6 billion in March to £10 billion.