U.K. changes course on economic policy

British Chancellor of the Exchequer Jeremy Hunt on Thursday announced a new emergency budget. The financial plan calls for budget cuts and about 55 billion pounds of tax increases. The British government aims to demonstrate that it will pay its bills and achieve long-term economic stability. The announcement means millions of people in the United Kingdom now face tax and energy bill increases.

Can Britain afford that? The independent Office for Budget Responsibility has pegged inflation in Britain at over 11 percent as of October, compared to a year ago. It predicts unemployment will rise to nearly 5 percent from 3.5 percent before the end of next year. Costs of living have also increased. Hunt says he will increase welfare benefits and state pension payments in line with inflation and help low-income residents with their energy bills.

Dig deeper: Listen to Nick Eicher’s conversation with David Bahnsen on The World and Everything in It podcast about investing, EFTs, and improving the economy.