This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.
X
Money Marketing Cover
Categories:Politics

Do not back-track on cuts, IFS tells Osborne

  • Print
  • Comment

The Chancellor George Osborne should resist pressure to backtrack on the Government’s austerity measures, according to the Institute of Fiscal Studies.

The IFS’s Green Budget, released this morning in conjunction with Barclays, says the Government should not react to last week’s growth figures which showed the economy contracted by 0.5 per cent.

It says: “Any fiscal loosening aimed at helping the economy could be ineffective if it prompts an offsetting monetary tightening, and risks undermining investor conference the remainder of the fiscal consolidation plan will be delivered.”

The report calls on the Government to clarify how it sees the future of the tax system and the purpose and direction of major taxes.

It says: “Successive governments have failed to present a coherent tax strategy and tax policy making has suffered from a lack of direction, imposing substantial costs on the real economy.”

In November the IFS released the Mirrlees review, a comprehensive review of the tax system.

The report predicts that if the Office of Budget Responsibility’s growth forecasts are right the Government will borrow slightly less over the parliament than the OBR predicts.

But it admits there are risks in this assessment and that any improvement in public finances should be banked to guard against any future lack of growth or budget problems.

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

The Money Marketing CPD Centre
Build your annual CPD - you can log and plan your CPD hours for free with The Money Marketing CPD Centre.

Taxbriefs Advantage
Advantage is a digital reference source giving unbiased, independent, answers to your technical queries. Subscribe to Taxbriefs Advantage.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick



Poll

Should the Government's retirement guidance scheme be independent of pension providers?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments