With the Government’s fiscal rules either expiring or simply being ignored by the incoming Prime Minister, Gemma Tetlow says the new Chancellor must quickly set some fiscal targets to guide the Johnson administration
The new OBR report echoes the risks to tax revenues highlighted in the Institute for Government’s Taxing Times report – and the need for the Government to do more to put the UK tax system on a sustainable footing, argues Joe Marshall
Philip Hammond is poised to use his Spring Statement to once again dangle the prospect of a Brexit “deal dividend” in front of MPs. At best the Chancellor would be offering no more than a temporary fillip, argues Dr Gemma Tetlow.
In a week dominated by Brexit and Trump, two dry reports about the UK’s public finances are unlikely to receive a lot of press coverage. But they pose a challenge to government that will endure long after Brexit, argues Martin Wheatley.
Unless it raises taxes or loosens its borrowing rules, the Government will have to cut spending on other public services by nearly 4% to pay for the recently announced NHS ‘birthday present’, warns Gemma Tetlow.
Gemma Tetlow argues that separating news of spending largesse from any serious attempt to explain where the money will come from makes it harder to make the case for necessary tax rises – or looser fiscal targets.