The warning of the British Institute for Financial Studies against the effect of the Iran war on the government budget

The British Institute for Financial Studies (IFS) warned that the sharp rise in prices following the American war and occupation against Iran created a major challenge for John Haley, the British Chancellor of the Exchequer, in formulating his first budget.

According to this think tank, higher-than-forecast inflation can reduce the real value of the budget dedicated to public services and force the government to decide between spending cuts, tax increases, or a combination of both.

The Institute for Financial Studies demands that the government provide reliable budget plans and not predict the reduction of expenses for the coming years, which it does not intend to implement, in order to present a balanced budget. The British Treasury declined to comment on what it called "rumors and speculation." However, on the eve of the annual meeting of the International Monetary Fund, John Haley said: "The consequences of the conflicts in the Middle East and Europe affected countries around the world and caused an increase in fuel prices and the cost of mortgages."

He added: "But Britain and its allies can meet these challenges by working together."

The British Chancellor of the Exchequer said that the upcoming budget will help strengthen economic resilience by relying on fiscal discipline and provide an opportunity to reduce the cost of living for households.