Autumn Statement: Bleak borrowing prediction rocks George Osborne’s deficit hopes.

[Mr Angry]

More financial chaos.

"The Government will have to borrow as much as £75bn more than it intended over the next five years, delivering a damaging blow to Chancellor George Osborne’s hopes of claiming that the Government has the country’s deficit under control.


In Mr Osborne’s last Autumn Statement this Wednesday before the general election, his attempts to boast of the Conservatives’ economic record are set to be over-shadowed by new, bleak fiscal forecasts from the Office of Budget Responsibility (OBR). Collapsing revenues from oil sales, stamp duty and income tax mean the Chancellor will be forced to admit his plans to bring the deficit down could be knocked off track."


Indy

[denphone]

Sadly whoever is in power there are going to be cuts , cuts and more cuts to try to claw back the deficit.

[papa smurf]

Originally Posted by denphone

Sadly whoever is in power there are going to be cuts , cuts and more cuts to try to claw back the deficit.

if labour get back in it will be spend it like its going out of fashion till its all gone again

[denphone]

Sadly most of this debt burden will fall on future generations.

[Ignitionnet]

Originally Posted by Mr Angry

More financial chaos.

"The Government will have to borrow as much as £75bn more than it intended over the next five years, delivering a damaging blow to Chancellor George Osborne’s hopes of claiming that the Government has the country’s deficit under control.


In Mr Osborne’s last Autumn Statement this Wednesday before the general election, his attempts to boast of the Conservatives’ economic record are set to be over-shadowed by new, bleak fiscal forecasts from the Office of Budget Responsibility (OBR). Collapsing revenues from oil sales, stamp duty and income tax mean the Chancellor will be forced to admit his plans to bring the deficit down could be knocked off track."


Indy

Here's what happens when you deal with a demand-side shock through supply-side economics based on dogma.

The stamp duty revenue fall also explains why some attempts to inflate a housing bubble were made. Oil is outside UK control, income tax is within control but requires a set of policies somewhat to the left of this government.

---------- Post added at 08:04 ---------- Previous post was at 08:03 ----------

Originally Posted by denphone

Sadly most of this debt burden will fall on future generations.

Just as the bill for the investment in the country that hasn't been getting done will.

---------- Post added at 08:04 ---------- Previous post was at 08:04 ----------

Originally Posted by papa smurf

if labour get back in it will be spend it like its going out of fashion till its all gone again

So long as it's in investment not current spending that would be fine.

Fat chance of any of them thinking beyond 5 years at a time..

I don't think it's that big an issue really ,maybe in the world of politics but in reality not so much .Falling tax revenues are largely due to the low pay rates and rising allowance thresholds .The government should be putting pressure on companies to raise wages which would put tax revenues somewhere near where they should be .The government have done well with the economy and getting people back into work but those people may as well have stopped on benefits if they aren't paying any tax because their wages are so low

[Osem]

Within a couple of years of the last election many people had conveniently forgotten the mess this country had been left in so expecting governments to plan and act in the long term when that's going to involve pain for the electorate in the form of more tax, austerity or whatever is asking a great deal IMHO. The truth is that far too many people expect far too much far too quickly these days and the politicians who get elected are increasingly those who simply tell people what they want to hear regardless of reality.

[Ignitionnet]

Originally Posted by Osem

Within a couple of years of the last election many people had conveniently forgotten the mess this country had been left in

I suspect that was more because we were wondering just how incompetent the government could get in that it inherited a growing economy and made the easy cuts, investment and capital expenditure, leaving the economy pretty much stagnant.

Originally Posted by ONS

UK Economy Expands 0.7% in Q3

The British economy grew 0.7 percent in the three months to September, according to the second estimate released by the statistical office. Private consumption and government spending were the main drivers of expansion while business investment and exports shrank.

Yeah, shame the deficit grew prodigiously while George, with one eye always on 2015, ran the economy for political not economic ends. Now it's politically expedient to invest, it's good to bribe the electorate without pleading national poverty, it's happening.

What we're getting now is some of the recovery this government's policies stalled by 3 years.

You didn't seriously buy that stuff about how we would've become Greece if not for cuts, did you?

[Pierre]

Originally Posted by papa smurf

if labour get back in it will be spend it like its going out of fashion till its all gone again

What do you mean "gone again"? It isn't back.

[Osem]

Originally Posted by Ignitionnet

I suspect that was more because we were wondering just how incompetent the government could get in that it inherited a growing economy and made the easy cuts, investment and capital expenditure, leaving the economy pretty much stagnant.



Yeah, shame the deficit grew prodigiously while George, with one eye always on 2015, ran the economy for political not economic ends. Now it's politically expedient to invest, it's good to bribe the electorate without pleading national poverty, it's happening.

What we're getting now is some of the recovery this government's policies stalled by 3 years.

You didn't seriously buy that stuff about how we would've become Greece if not for cuts, did you?

By 'we' you mean you or the majority of the electorate? When the majority of people don't even bother to vote because they're fed up with the system I don't suppose ONS pontifications mean that much. You could be entirely right about what might have happened if, but that doesn't alter the reality that people don't tend to vote for long pain whether it's long term or short term when there's an opposition which promises more for less. The political colour of the promises is irrelevant to all except those who vote for the same party no matter what. At least I can go to bed knowing 2 things - I will vote and it won't be for the party I voted for last time.

[007stuart]

Just heard he's going to reform Stamp Duty.

Seems to be following Scotland again.

[Ignitionnet]

Ed Balls' response has been abysmal so far. Absolutely abysmal.

[Sirius]

Originally Posted by Ignitionnet

Ed Balls' response has been abysmal so far. Absolutely abysmal.

And some think he should be running the countries fiances from next year, god help us.

[Ignitionnet]

Originally Posted by Sirius

And some think he should be running the countries fiances from next year, god help us.

Improved as time went on.

Still digesting all the discussion.

EDIT: Cutting total public spending by 10% over the course of 4 years raises eyebrows.