Independent forecaster concedes positive predictions could change as experts are sceptical that tax receipts will pick up as quickly as expectedThe Treasury’s independent forecaster has conceded there are gigantic uncertainties in its predictions for higher tax revenues after the chancellor used the prospective windfall to justify a softer pace of cuts in his autumn statement.
The Office for Budget Responsibility said it now expects more money to flow into government coffers from income taxes,corporation tax and VAT than it did at the time of its final forecasts, at George Osborne’s summer budget just four months ago. The OBR also expects the government to gain some fiscal headroom thanks to lower interest payments on its debts. Related: George Osborne scraps tax credit cuts in welfare U-turn Related: Santa Osborne hands out autumn gifts, or riding his future sofa Related: What does the spending review look like? Related: The people's verdict: 'Worry over spending cuts is killing me' Continue reading...
Source: theguardian.com