The United Kingdom is set to unveil its annual budget on Wednesday against a backdrop of poor public finances and widespread public discontent with the governing Labour Party.

UK Chancellor Rachel Reeves faces the onerous task of restoring the public finances to health, while upholding a number of pledges that leave her with little manoeuvring room on taxes and spending.

Economists say that Reeves will have little choice but to compromise on her plans as she faces what a leading think tank has dubbed an “impossible trilemma”.

Why is this budget so challenging for the UK government?

The UK has struggled with weak economic growth, high inflation and a rapidly expanding national debt for years.

After Germany, the UK has had the weakest economic performance among the Group of Seven (G7) c

See Full Page