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Government Forecasts Likely To See Slower 2011 Growth

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http://uk.reuters.com/article/idUKTRE6AP51020101127

The independent Office of Budget Responsibility is on Monday likely to downgrade its 2011 growth forecast but will raise its estimate for this year, the Financial Times reported.

The OBR, created by the government this year to give more credibility to the forecasts underpinning fiscal policy, is also likely to say the government's deficit reduction plan is realistic, the FT said.

Citing aides to Chancellor George Osborne who have seen the forecast, the newspaper said the government's Autumn fiscal policy statement -- also due on Monday -- would not contain any further spending cuts or tax hikes.

The newspaper said the fiscal watchdog's 2010 growth forecast would rise to close to 1.8 percent from the 1.2 percent predicted at the time of the coalition's June budget.

It said Treasury officials accepted growth forecasts for 2011 were likely to be lower than the 2.3 percent expansion estimated in June.

Most economists regard the OBR's growth forecasts for such growth in 2011 and stronger performances in the following years as optimistic, given risks to the global economy and the likely impact of severe government spending cuts and several tax rises.

Growth this year, however, has been surprisingly strong, raising the chances that the OBR would need to revise its 2010 forecast higher.

So if they downgrade the growth figures what does this mean for projected tax revenues? Surely they will be down as well meaning the austerity cuts are now meaningless as we'll have to borrow money to meet the loss of tax revenue?

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http://uk.reuters.com/article/idUKTRE6AP51020101127

So if they downgrade the growth figures what does this mean for projected tax revenues? Surely they will be down as well meaning the austerity cuts are now meaningless as we'll have to borrow money to meet the loss of tax revenue?

Do not forget that all we need is for the private sector and investment part of GDP to grow. We need the government part of the GDP to fall. I would be very happy to see GDP at 0% growth as long as the private part was +5% and the government part was negating this to net zero overall.

We no longer have the Gormless Idiot Brown and his expand govt spending by borrowing loads of money that he thinks grows on trees running the country.

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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