TaxAdministrationTreasury coffers looking unhealthy

Treasury coffers looking unhealthy

Economists warn public finances are in a ‘poor position’ to cope with the coming downturn

Jonathan Loynes of Capital Economics predicts net borrowing will rise to
£45bn this year and £50bn in 2009-10 – far above the chancellor’s forecast of
£38bn.

He told the Financial Times borrowing was close to 3% of national
income and ‘the public finances are in a worryingly poor position to cope with
the coming downturn in the economy’.

The warning comes despite public sector net borrowing recording a surplus of
£500m in April – the best start to a financial year since 2001-02. But the
Treasury expects borrowings to rise from £33.7bn last year to £43bn by the end
of the financial year.

Economists cautioned it was early days to be judging the government’s fiscal
position this year, which would depend on linked issues – how rapidly the
economy slowed; what happensed to oil prices, North Sea production and profits;
and whether the government chose to fund its £2.7bn tax giveaway later in the
financial year.

Further reading:

Read
the Financial Times story

Related Articles

HMRC appeal rejected in Tottenham Hotspur case

Administration HMRC appeal rejected in Tottenham Hotspur case

2w Emma Smith, Managing Editor
HMRC issues updated Trusts Registration Service guidance

Administration HMRC issues updated Trusts Registration Service guidance

2w Emma Smith, Managing Editor
New trading allowance: simplicity, but not as we know it

Administration New trading allowance: simplicity, but not as we know it

2m Emma Rawson, ATT Technical Officer
‘Improve rather than lose’ disincorporation relief, tax body urges

Administration ‘Improve rather than lose’ disincorporation relief, tax body urges

2m Austin Clark, Reporter
Are you ready for the Trusts Registration Service?

Administration Are you ready for the Trusts Registration Service?

3m Helen Thornley, ATT Technical Officer
Advisers bullish despite Brexit concerns

Accounting Standards Advisers bullish despite Brexit concerns

1y Fraser Simpson, Reporter
Brexit: Five questions accountants should be asking

Accounting Firms Brexit: Five questions accountants should be asking

1y Fraser Simpson, Reporter
UK votes to leave EU – accountancy profession reacts

Accounting Firms UK votes to leave EU – accountancy profession reacts

1y Fraser Simpson, Reporter