Banking on change (UK governments budget options)
Article Type: Abstracts From: Strategic Direction, Volume 26, Issue 6
Emmerson C. and Tetlow G.Public Finance (UK), 6-12 November 2009, Start page: 22, No. of pages: 4
Ahead of the UK government’s Pre-Budget report, considers the measures that will be announced to reduce government borrowing. Reviews the challenges facing the UK’s public finances, discussing the impact of the recession and the measures taken in response to it, including the support given to the banking system on government borrowing. Examines the measures that need to be taken,arguing that permanent increases in taxation revenue and cuts in spending on public services are required. Outlines the current proposals that have come from government and also discusses the proposals that the Conservative Party have set out. Notes some indicators that suggest that the Treasury’s forecast for 2009/2010 will be right despite the poor figures for economic growth, making it possible that government borrowing will not have risen as much as feared. However, cautions that tax rises and spending cuts will still have to be very large to reduce borrowing to a sustainable level.Article type: ViewpointISSN: 1352-9250Reference: 39AC264
Keywords: Cost reduction, Government policy, Public services, Recession, Taxation, United Kingdom
