This a moment of reckoning for the public finances

Ian Stewart, chief economist at Deloitte, comments on today’s Budget:

“This a moment of reckoning for the public finances. Not since Norman Lamont’s tax raising budget of 1993 has the first budget of a parliament seen such a sharp increase in taxes. Higher taxes, coupled with major increases in public borrowing will help the government deliver a big boost to investment and health spending, but will leave departments accounting for about one third of all spending facing cuts later in the parliament. 

“The OBR thinks this budget will boost growth, with the effect of higher taxes being more than offset by higher public spending. This explains the strikingly high 2.0% GDP forecast for next year, which would make the UK the fastest growing economy in the G7. 

“The UK economy is on a recovery path but, despite today’s changes, the public finances are not out of the woods. Although the UK tax burden is heading to record levels, the OBR only assigns a probability of just over 50% that the government will hit its own rules for curbing debt.”

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Deloitte spokespeople

Deloitte has a range of spokespeople available to comment on today’s Autumn Budget. They can be reached on 0207 303 5054 or one of the following numbers:

• Ian Stewart – chief economist (07774 337 581)
• Amanda Tickel – head of tax policy (07825011798 / 07768178264)
• Rachel McEleney – personal tax (07825011798)
• Mark Outtrim – business rates (07774 337581)
• Ed Roddis – public sector (07785 682226)
• Toby Price – stamp duty (07990 434703)
• Leila Jiwnani – hospitality and leisure (07824 895798)
• James Clare – carried interest (07586 511104)
• Anthony Massey – energy tax (07774 337581)

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