Snacks face difficult financial budgets, IFS warns

Rishi Sunak is boxed by Difficult finance The Institute for Fiscal Studies said in a regular analysis prior to the financial statement on Tuesday that it left little extra money for Britain’s tight government services in this month’s budget.

According to an independent think tank, the prime minister will only meet his rules on the October 27 budget, despite the historically significant “smuggling” of tax increases hidden in the pandemic.

When Gasoline prices reach record levelsWith a harsh medium-term outlook, Snacks continues to sparring with its Cabinet colleagues over industrial support and education, railroads, justice, and funding for local governments. Finished his spending review and It will be published with the budget.

IFS’s “Green Budget”, which seeks to mimic the government’s “Green Paper” that allows discussion before accounting events, was created in collaboration with investment bank Citi.

Forecasts for 2021 and 2022 were significantly more optimistic than the March budget, but growth was now slowing following good times as the economic recovery in production was expected to fall below the pre-pandemic path. The report states. 2-3 percent of national income.

This will allow public finances to reach the prime minister’s current budget balance, excluding investment, by the middle of the decade, but with little room. However, the underlying public sector debt stabilizes at about 90% of national income, 17 percentage points higher than before the coronavirus crisis.

This year the Prime Minister has corporate tax, income tax, and National insurance According to the report, it will only support finances and fund health and social care spending that would have been needed anyway.

“The tax increase was smuggled behind a pandemic,” said Paul Johnson, director of the IFS. “Social care and the NHS needed to be funded and literally had nothing to do with the pandemic.” Added.

Health spending is projected to be between 27% of daily public spending in 1999-2000 and 44% by 2024-25, with little money left in other unprotected sectors, reports. Says. Spending can actually increase by 3% per year, but the budget.

“There are high levels of taxes and spending, but in unprotected areas it feels like there’s no extra spending,” Johnson said.

IFS and Citi look much brighter if the economic situation is in uncertainty and it is wrong to assume that there will be long-term turmoil and scars from the post-covid economic “restructuring.” Said it would be. In such a scenario, they added that there would be an opportunity for tax cuts before the next election.

Christian Schulz, City’s UK lead economist, said the economic “situation is getting tougher” after the rapid growth of spring, with the coronavirus still present and people not quickly reverting to past behavioral patterns. I have. ”

However, when production approaches pre-pandemic levels, tax revenues will increase significantly, accelerating future growth. Schultz believed that Britain was likely to recover more strongly than Britain due to the additional burden of the “prolonged” impact of Brexit.

“The uneven rebounds so far have shown more serious Brexit and Covid-related rebounds in the coming years,” he said.

Snacks face difficult financial budgets, IFS warns

Source link Snacks face difficult financial budgets, IFS warns

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