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Fiscal Prudence Triumphs over Political Gimmicks

  • Image Credit: @PHammond/TwitterUK’s borrowing forecast for this year drops by £16bn. But borrowing from 2017-18 onwards is unchanged and the UK will still have a budget deficit of 0.9% GDP in 2020-21.

  • It is welcome that the Chancellor’s budget measures are fiscally neutral over the forecast period. Fiscal prudence is needed over the next few years.

  • NICs change could affect competitiveness and entrepreneurship. Instead, the Chancellor could have lowered NICs for the employed and reduced spending in other areas to pay for the change.

  • However, recommitments on income tax thresholds and lowering corporation tax rates to 17% show that Britain is still open for business.

  • New free schools and the introduction of T-levels will offer a much needed long-term boost to productivity and skills across the UK.

Daniel Mahoney - Friday 10th March 2017

Daniel Mahoney

Daniel joined the Centre for Policy Studies as Head of Economic Research in November 2015. He was promoted to Deputy Director in March 2017. Prior to joining the CPS, he worked in research roles for a number of parliamentarians.