Chancellor signals to the markets that fiscal orthodoxy is back

Debapratim De, senior economist at Deloitte, said: 

“Today's Autumn Statement represents a significant tightening of fiscal policy. The Chancellor has set out plans to reduce the deficit over the next five years by a similar amount, as a share of GDP, as George Osborne achieved in the first five years of his Chancellorship. While the Osborne-era reduction was largely delivered through cuts in public spending, this time the Chancellor expects tax rises to do a lot of the heavy lifting. 

“This is an ambitious target, not least because it is to be met over a recession and after two years of the sharpest contractions in disposable income on record. For a number of reasons, the coalition government was able to achieve only half the reduction promised in its June 2010 budget by 2015, showing how difficult it can be to cut deficits. 

“More than anything, today's statement is a signal to markets that the British government is committed to balancing its books and keeping debt under control. The real measure of its efficacy will be its ability to limit sharp rises in gilt yields and rate expectations in the coming weeks.” 

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Deloitte spokespeople

Deloitte has a range of spokespeople available to comment on today’s Autumn Statement. They can be reached on 020 7007 3333 or 0207 303 5054 or one of the following numbers:

• Debapratim De - senior economist (07884 765916)

• Amanda Tickel - head of tax policy (07920 270 964)

• Rachel McEleney - personal tax (07826 891 752)

• Alison Lobb - corporate tax (07768 178264)

• James Warwick - employment tax (07855 399368/07436055437)

• Gareth Pritchard - indirect tax (07824895798)

• Gerry Biddle - business rates (07855 399 368)

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