Public finance data leaves room for tax cuts
20 October 2023
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Monetary Policy
In the Media
Julian Jessop quoted in The Daily Express and Guido Fawkes
23 October 2023
Trade, Development, and Immigration
8 November 2024
Commenting on today’s ONS public sector finances figures, Julian Jessop, Economics Fellow at free market think tank the Institute of Economic Affairs, said:
“Public finances are in better shape than expected, leaving room for some well-targeted tax cuts.
“Despite all the spin about how higher inflation and interest payments have reduced the Chancellor’s wiggle room, borrowing in the year to date is now nearly £20 billion lower than the OBR forecast. This partly reflects the boost to tax revenues from higher prices, wages, and profits.
“This improvement might only be temporary. There was more evidence today that the economy is on the brink of recession, with retail sales and consumer confidence both tumbling. However, this only strengthens the case for a pro-growth budget.”
“Public finances are in better shape than expected, leaving room for some well-targeted tax cuts.
“Despite all the spin about how higher inflation and interest payments have reduced the Chancellor’s wiggle room, borrowing in the year to date is now nearly £20 billion lower than the OBR forecast. This partly reflects the boost to tax revenues from higher prices, wages, and profits.
“This improvement might only be temporary. There was more evidence today that the economy is on the brink of recession, with retail sales and consumer confidence both tumbling. However, this only strengthens the case for a pro-growth budget.”
ENDS
Notes to Editors
Contact: media@iea.org.uk / 07763 365520
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.
Notes to Editors
Contact: media@iea.org.uk / 07763 365520
The mission of the Institute of Economic Affairs is to improve understanding of the fundamental institutions of a free society by analysing and expounding the role of markets in solving economic and social problems. The IEA is a registered educational charity and independent of all political parties.
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