BDO urges focus on medium-term fiscal deficit
Budget to be used as platform for setting out economic roadmap
Mid-tier accountancy firm BDO Stoy Hayward is urging Chancellor Alistair
Darling to use next week’s Budget to address the UKs medium-term fiscal deficit.
Stephen Herring, senior tax partner at BDO Stoy Hayward, said: ‘The key
issue, as recently highlighted by Mervyn King, is whether or not the Chancellor
will be able to reconcile the need to increase taxation in the medium term with
the shorter term perception that further fiscal stimuli are required?’
In last year’s pre-Budget report, Darling forecasted the annual budget
deficit to be £77.6bn (and £118bn and £105bn in 2008/09, 2009/10 and 2010/11
respectively), but according to Herring, this will be far higher now due to
falling tax revenues, bank bail-outs and rising unemployment.
Further Reading:
KPMG
wants simpler tax system in Budge
Deloitte’s
2009 Budget wish-list