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Weak Uk Tax Revenue Could Thwart Osborne's Surplus Aim, Thinktank Says

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http://uk.reuters.com/article/uk-britain-budget-ifs-idUKKCN0VH0Q8

Chancellor George Osborne's ambition to run a budget surplus by the end of the decade could easily be frustrated by disappointing tax revenues, the Institute for Fiscal Studies said on Monday.

Britain's finance ministry could miss out on 5 billion pounds ($7.25 billion) of income tax if wage growth disappoints by just 1 percent by 2019-20 compared with forecasts made in November, the non-partisan IFS said in a report ahead of Osborne's annual budget on March 16.

The IFS said economic growth this year was likely to be weaker than the 2.4 percent forecast in November by the government's budget watchdog, the Office for Budget Responsibility.

Last week the Bank of England also downgraded its forecasts for both growth and wages over the coming years.

That could put Osborne's plan to run a budget surplus by the 2019-20 financial year in doubt, a goal described last year by the IFS as having a 50-50 likelihood of success.

George Osborne has feck all chance of running a surplus by 2019-20.

Is George's minimum wage gambit also an attempt to raise more tax revenue?

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I suspect the UK has gone over the event horizon wrt to balancing the books.

More tax need and higher prices.

:lol::lol::lol:

or maybe, howz about, REAL AUSTERITY !!!!

Edited by TheCountOfNowhere

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Anybody seen the London Evening Standard today ?

Front pageHeadline runs:

RENTERS RUSH FOR HELP-TO-BUY LOANS

You flip the page and the continuation of the story runs with a new headline:

Fears of a suburban house price rise

Problem is on the top of the same page the headline is:

Osborne's income tax pledge 'may have to be funded by deeper cuts'

What do I need to do to wake up from this bizarre fantasy Idiocracy ?

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It must come as quite a shock for Osborne to realise now that his predictions for the UK economy - before the general election - were just a figment.

:lol::lol::lol::lol:

Edited by billybong

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So promoting rentierism results in people not bothering making the effort anymore. Who'd have thought it....

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So promoting rentierism results in people not bothering making the effort anymore. Who'd have thought it....

.....so who will pay the rents when no longer able to pay?...........taxing little income and high expenditure will not help pay the rent.....taxing wealth might help pay towards the countries growing rental costs. ;)

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I suspect Osborne abandoned his deficit reduction timetable the day after the election was won and has been spending furiously ever since. This additional largesse has begun to show up in the borrowing figures, which I expect to worsen significantly before the year end. No doubt Carney and Chote will be on hand with their usual obfuscatory blandishments, even as Gidiot prepares his own. Of course, a co-ordinated global downturn gives him the perfect excuse to keep the fiscal taps wide open.

£130bn primary deficit this year and next?? Money's no object when there's a referendum to win! Full speed ahead and damn the torpedoes.

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Anybody seen the London Evening Standard today ?

Front pageHeadline runs:

RENTERS RUSH FOR HELP-TO-BUY LOANS

You flip the page and the continuation of the story runs with a new headline:

Fears of a suburban house price rise

Problem is on the top of the same page the headline is:

Osborne's income tax pledge 'may have to be funded by deeper cuts'

What do I need to do to wake up from this bizarre fantasy Idiocracy ?

Billions to prop up his housing friends and let the rest of the country go to pot. It's been said on this site for years. That's his only mandate.

The Standard stories don't surprise me.

The lunatics are running the asylum.

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George Osborne faces government borrowing challenge

The ONS said the January public finances surplus, excluding banks, rose by £1bn to £11.2bn. That was the largest surplus for any January since 2008, but below the £12.6bn forecast by economists. The ONS said that government borrowing for the current tax year, from April 2015 to January 2016, was £66.5bn - £10.6bn lower than at the same point in the previous 12 month period.

The OBR, the government's budget watchdog, has forecast that the UK will borrow £73.5bn for the financial year to March. As a result, the Chancellor, George Osborne, will only be able to borrow about £7bn in February and March in order to meet the OBR forecast. The sum for those two months last year was £14.8bn.

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Osborne will drop a "tax bombshell" with pensions overhaul

Former pensions minister Steve Webb has warned that chancellor George Osborne is getting ready to drop a £4bn “extra tax bombshell” in next month’s Budget by getting rid of the so-called tax-free lump sum. Webb, who was pensions minister in the coalition and is now director of policy at Royal London, said today that existing rules allowing people to access 25 per cent of their pension pots tax-free in a single lump sum when they reach the age of 55 “could be on the brink of extinction” if Osborne introduces a so-called pensions ISA.

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Attempts to balance the books by modestly reducing the bloated working benefits and tax credits bill failed miserably. It's what keeps the housing market and BTL alive, so landlords and bankers just weren't having it. Hence the House of Lords scuppered austerity (for property investors). The result of the Lords' action sends UK crashing out of the EU. It's the only way of limiting total cost of benefits and WTCs and stopping UK benefits culture acting as a magnet for immigration. Who knows what the other fiscal consequences of brexit might be though? Can't wait to see Treasury guesscasts on this.

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