Budget softens near-term blow but leaves fiscal squeeze to come

Commenting on today’s Budget announcement, Debapratim De, chief economist at Deloitte UK, said: “This was unlikely to be a blockbuster budget. But the raft of small policy measures announced today should help soften the blow to households from rising inflation and support growth in the near future.

“Like his predecessor, the Chancellor has announced an easing of policy in the short term to be offset by tightening later. This adds to the significant fiscal squeeze already pencilled in for the end of this parliament following previous budgets.

“The Chancellor is relying on big tax rises and deep cuts to spending - over a potential election year - to meet the fiscal rules. That, alongside a reduced headroom, leaves fiscal policy more vulnerable to external shocks and the resulting uncertainty.”

ENDS

Note to editors

Deloitte spokespeople

Deloitte has a range of spokespeople available to comment on today’s Budget. They can be reached on 02920 927541 or one of the following numbers: 

• Amanda Tickel – head of tax and trade policy (+44 7920 270964)
• Debo De – chief economist (+44 7887 629107)
• Rachel McEleney – personal tax (+44 7774 337581)
• Alison Lobb – corporate tax (+44 7774 337581)
• Michael Nicolaides – employment tax (+44 7586 511104)
• Toby Price – stamp duty (+44 7824 895798)
• Andrew Clarke – VAT (+44 7887 629107)
• Chris Baldwin – business rates (+44 7785 682226)
• Ed Roddis – public sector (+44 7785 682226)
• Peter Johnson – FS/bank tax (+44 7586 511104)
• Annis Lampard – private tax (+44 7824 895798)
• Richard Bray – Places (+447990434703)
• Ian Goodsell – Private client (+447990434703)

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