PwC agrees Chancellor may break Golden Rule

PwC agrees Chancellor may break Golden Rule

PricewaterhouseCoopers has added its name to the list of those who claimthe Chancellor could end up breaking his golden economic rule.

Link: Brown set to break Golden Rule

A PwC report just published concludes that the Brown could end up borrowing to fund current spending.

Since taking power in 1997, the Chancellor’s Golden Rule has been to borrow only to fund investment.

PwC said taxes might have to rise by at least £7bn to cut the budget deficit unless spending can be reduced after 2007.

The firm joins Ernst & Young in claiming that the Golden Rule could be broken.

And weaker than expected tax revenue figures in September also prompted speculation that Number 11 would need to borrow to cover the current cost of spending.

Brown has budgeted to borrow £33bn over the course of the current financial year.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource