View more on these topics

Do not back-track on cuts, IFS tells Osborne

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.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com