Brexit & EconomyPoliticsITEM Club warns of disappointment for chancellor

ITEM Club warns of disappointment for chancellor

Disappointing tax revenues despite strong economic growth

Professor
Peter Spencer
, chief economic advisor to the
Ernst &
Young ITEM Club
, has warned chancellor
Gordon Brown to expect
to be disappointed by this year’s tax figures, despite strong economic growth
overall.

‘This year’s figures will be a disappointment for the chancellor. Despite the
strong growth in the economy, tax revenues were no higher than last January.
Central government current receipts came in at £53.4bn, compared with £53.3bn in
January 2006,’ Spencer said.

‘Although payments of income tax were up 11%, helped by City bonuses,
corporation tax payments were 23% lower than last year. That is very surprising
given the strong growth in profits seen over the last two years. VAT payments
seem to have picked up along with the revival on the high street. They were up
8.5% on the year,’ he added.

Spencer said that looking at the financial year to date gives a better
perspective, one that is more favourable to the Treasury.

Further reading:

E&Y ITEM Club: No more rate rises this year

ITEM club lifts economic predictions

E&Y warns on tax rises

Related Articles

5 key takeaways from Theresa May’s Florence speech

Brexit 5 key takeaways from Theresa May’s Florence speech

3m Alia Shoaib, Reporter
UK at risk of Brexit talent brain-drain

People Practice UK at risk of Brexit talent brain-drain

4m Alia Shoaib, Reporter
Brexit essentials: this week's round-up

Politics Brexit essentials: this week's round-up

4m Alia Shoaib, Reporter
Government publishes post-Brexit customs arrangements policy paper

Politics Government publishes post-Brexit customs arrangements policy paper

4m Alia Shoaib, Reporter
Italy grants first successful non-dom status application to former UK non-dom

Personal Tax Italy grants first successful non-dom status application to former UK non-dom

4m Emma Smith, Managing Editor
Increased government spending partly offset by high tax revenue

Governance Increased government spending partly offset by high tax revenue

5m Alia Shoaib, Reporter
Less than a third of UK businesses have made formal Brexit plans

Politics Less than a third of UK businesses have made formal Brexit plans

5m Alia Shoaib, Reporter
Nicky Morgan elected Chair of the Treasury Committee

Politics Nicky Morgan elected Chair of the Treasury Committee

5m Alia Shoaib, Reporter