Bank of England Governor Andrew Bailey and his colleagues noted the risks that inflation remain well above the UK’s 2% target for some time. In testimony to the Treasury Committee in Parliament on Thursday, Bailey said he expects inflation to fall sharply this year, but there are risks around that forecast. Lawmakers on the panel quizzed members of the nine-member Monetary Policy Committee about why they allowed inflation to soar to a 41-year high of 11.1% last year. Also testifying were...

The assessment delivered by the Bank of England this week made for dismal reading. The UK is now in recession, and a shrinking labor force means the economy has little scope to make up ground once the slump is over. As the Resolution Foundation think tank pointed out, Britain is in the midst of the worst 20 years for growth since the Great Depression, assuming the BOE forecasts are correct. The UK is in the Worst 20 Years of Growth Since 1938 The central bank now thinks UK output can grow no...

Young people in the U.K. should receive a 10,000-pound ($13,500) cash handout to help address the wealth divide with older generations, a think tank proposed Tuesday. The Resolution Foundation said a “citizen’s inheritance” should be paid to people on their 25th birthday to help them with deposits to buy homes, training costs or cash to start a new business. It would be funded by increasing the amount the government gets from taxing inheritances. The report also calls for workers of...

Resolution Foundation chair makes case for capital taxes Warns health-care costs set to soar as population ages Britain should impose higher wealth taxes on the older generation to ease the growing burden on young people, according to the Resolution Foundation. In a speech Monday, Executive Chair David Willetts will warn that welfare spending is set to rise by the equivalent today of 60 billion pounds ($83 billion) by 2040 as aging “baby boomers” drive up the cost of health care. “The time...

The assumption that each generation will be better off than the one before them died in the financial crisis. Millennials in their early 30s earn 4 percent less on average than people born between 1966 and 1980 did at the same age and rates of home ownership have fallen, the Resolution Foundation found in ananalysis of eight high-income countries. The shift in fortunes has been particularly acute in the U.K., which may help explain the voter backlash that cost Prime Minister Theresa May her...