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Gordon Brown's Black Hole

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No, not his mouth, I'm talking about the black hole in the public finances:


With so much uncertainty over expenditure, analysts concentrated on the tax revenue figures. Corporation tax receipts were strong in October. Companies paid £8.2bn compared with £6.7bn in October 2004, a 23.4 per cent increase, but still below the increase of 28 per cent the chancellor had expected.

The growth of income tax, capital gains tax and value added tax revenues was also below Budget forecasts. Total tax revenues this financial year have risen by 7.4 per cent compared with the Budget forecast for growth of 8.5 per cent.

Since October is a month when almost a quarter of corporation tax is paid, the shortfall is serious. In the remaining five months of the financial year, corporation tax revenues would have to be 50 per cent higher than last year if Mr Brown was to meet his forecasts. Without such a surge in corporation tax payments, revenues will fall £3.5bn short, the Institute for Fiscal Studies said.

Carl Emmerson, deputy director of the IFS, said the government was on course to run a current budget deficit of £11.7bn.

Hopefully the fact that this government is strapped for cash will mean that they can't afford to come up with any more harebrained schemes to prop up the UK Ponzi scam (aka housing market).

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  • 301 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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