08:12 AM EDT, 10/28/2024 (MT Newswires) -- One of the main focuses this week will be the release of the much anticipated United Kingdom Budget from the new Labour government, said MUFG.

It has been reported that the government is seeking to fill a fiscal hole of around 20 billion pounds and may implement additional tightening measures to give it headroom., noted the bank.

A larger package of tax hikes poses downside risks to the UK growth outlook, pointed out the bank. At the same time, the government has confirmed it will adjust the definition of debt used in the debt rule to create some more leeway to borrow for investment throughout parliament.