Sir Peter Kemp, writing in today’s Accountancy Age, throws doubt on the effectiveness of the government’s multibillion pound surplus by saying it would only take a small error or change in financial circumstances to wipe it out.
The qualified accountant warns: ‘The numbers are necessarily uncertain; heavily dependent on forecasting which reflects past experience but doesn’t insulate you against shocks, for instance lower growth in the wake of an American slow down.’
Sir Peter writes that any pledge to cut spending, whether it be by #8bn or #16bn, is really a promise to reduce the increase. ‘Overwhelmingly cuts just mean less of more,’ he says.
Go to Sir Peter Kemp’s analysis on page 12.