The 2008 Budget: Ninth Report of Session 2007-08 : Report, Together with Formal Minutes, Oral and Written Evidence
The Stationery Office, 2008 - Business & Economics - 166 pages
This report examines the forecasts and measures contained in the 2008 Budget (HC 455, session 2007-08, ISBN 9780102953336). The Treasury's lower forecasts for economic growth in 2008 and 2009 are above the average of independent forecasters, suggesting that the Treasury may have given insufficient weight to the risks of continued financial market turbulence and that some of the UK economy's characteristics that have proven beneficial in past crises (rapidly rising residential property prices, close links with the US and an increasing reliance on the financial services industry, for example) might prove to be conduits through which the current problems in global financial markets are transmitted to the UK real economy. The further weakening of the forecasts for the public finances is noted, and it appears premature for the Treasury to state that it is "on course" to meet the golden rule in the next economic cycle, given the lack of an end date for the previous economic cycle. Measures on child poverty are welcomed, but there is a need for a clear explanation on deployment of resources to ensure that the target to halve child poverty by 2010-11 will be achieved. The abolition of the 10 pence rate of income tax will most affect those under 65 years of age, in childless households, earning under £18,500: the Committee feels this group is an unreasonable target for raising additional tax revenues. The Treasury should commission research into whether the withdrawal of the 10 pence income tax band and high marginal deduction rates are creating disincentives that could frustrate the Government's welfare to work objectives. The Committee also calls for a national Saving Gateway targeted at low-income households and more consideration of tax changes on the middle and lower income groups of non-domiciled taxpayers.
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The public finances
Child poverty fuel poverty and the poverty trap
Public expenditure issues
Conclusions and recommendations
19 March 2007 Pre-Budget Report Alistair Darling announced assets Bank of England Bear Stearns borrowing Budget Report Chairman Chancellor changes Child Benefit child poverty Chris Martin consultation Dave Ramsden Dr Martin Weale Dr Weale Dunne economic cycle Edward Troup effect Exchequer expect Fallon Financial Reporting Standards fiscal policy forecast fuel poverty going golden rule Government Government's growth HM Revenue HM Treasury HMRC house prices Ibid IFRS impact implementation income shifting increase inflation International Financial Reporting issue Jim Cousins John Thurso Keeble look low income marginal deduction rates measures Mike Williams million mortgage Mudie Nick Ainger non-domiciled Northern Rock Paragraph Peter Viggers Pre-Budget Report problem public finances public sector resilience Revenue & Customs risks Robert Chote Rosewell Sarah Mullen Saving Gateway Simon Gallagher social tariff sustainable investment rule target tax credits taxation taxpayers things Treasury Committee Treasury's UK economy