The ITEM Club forecast shows the UK economy improving modestly throughout 2005, with an expected GDP growth of 2.6%, driven principally by the public sector. However, it saw the ecomomy ‘hitting a wall in 2006 as the government’s funding problems cultimate in tax rises in next year’s Budget.’ It also showed that while households have mainly kept their spending in growth in line with their incomes since 2000, government spending has rapidly outpaced the increase in tax receipts.
Professor Peter Spencer, chief economic advisor to the ITEM Club, said ‘consumers are balancing their household books rather better than the chancellor is balancing his Budget Red Book.’
Although the UK economy is forecast to improve modestly throughout 2005, Spencer says that longer-term, the fiscal position will be unsustainable, and that tax and social security contribution rates have to be increased in the 2006 Budget.
Mark McMullen joins the private client services team from Smith & Williamson
Merger between Clear & Lane Chartered Accountants and Magma Chartered Accountants was finalised on 3 February
BDO has taken its new partner intake to 23 during the first half of its financial year, including the appointment of five partners in five weeks
The firm reports 7.6% global fee income growth for the year ending 31 December 2016