Quote:
Originally Posted by MTVN
It's the Bank of England who set the original growth forecast and they who have just revised it down, it's not the government.
The optimism comes from the fact that our economy is undeniably more stable now than it has been for a long time. The general consensus seems to be that that will be reflected in living standards soon: http://www.ft.com/cms/s/0/d5e2997c-9...#axzz3a6LDaL9P |
Doesn't look that stable to me.
Even as recently as the March Budget, the OBR made a forecast for growth and for tax revenues. Between the Budget and the autumn statement it revised the growth forecast up by a little bit, but revised income tax and national insurance substantially down because, owing to this year’s stagnating wages and cost of living crisis,
growth has not brought in the revenues that the Chancellor wanted. In comparison with the March Budget,
we have actually lost £8.4 billion in this fiscal year, not because spending cuts have not gone ahead or tax cuts have not been delivered, but because the tax revenues have not come in as a result of growth and stagnant wages. Ultimately, the only way of reversing the problem is yes, to cut spending, and yes, to raise taxes—as the Chancellor has done in this Parliament—but also to get the economy growing in a stronger way which will bring in tax revenues. If he does not do that, the Chancellor will carry on failing year after year, as he has in this Parliament.
http://www.theyworkforyou.com/debate...5-01-13b.738.0