Treasury chooses to accept £38bn extra borrowing in face of economic headwinds

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Public Finances and the Economy

OBR gives the Chancellor a £55bn fiscal black hole, double the £27bn windfall from the Autumn Statement The weaker outlook for productivity and pay has led the OBR to give George Osborne a £55bn fiscal hole, reversing twice over the £27bn fiscal windfall it gave him in the Autumn Statement. The Chancellor has rightly chosen … Continued

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Keeping the government’s tax cut commitments on track means the Chancellor finding £2bn over next two years

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Public Finances and the Economy

The Chancellor will need to find £2bn over the next two years to keep the government’s income tax cut pledges on track – with a £300m down payment needed this April – and with 85 per cent of the windfall going to the richest half of households, new analysis from the Resolution Foundation will show. … Continued

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Pension tax reforms could boost middle earners’ pension pots by 20 per cent

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Incomes and Inequality

  Substantial losses for high earners likely to be behind Chancellor’s pre-Budget postponement Radical pension reforms could significantly boost the pension savings of the majority of earners, but at the cost of substantial losses to high earners and major disruption to the industry. These costs are likely to have led to the Chancellor backing off … Continued

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Weak wage growth poses questions over stability of recovery

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Jobs, Skills and Pay

The first full year when average wages are expected to recover to pre-recession levels was pushed back from 2017 to 2018 today by the government’s official economic forecasts, despite strong and very welcome growth in employment. As a result, the Resolution Foundation calculates that the median wage – the pay of a typical worker – … Continued

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New childcare support is welcome but it’s skewed towards the affluent and misses out the poorest working families

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Tax and Welfare

Overall there are 2.6 million working families who will be eligible for new childcare support announced in the Budget. This extra money (just under £1bn) will bring real help to those families who take it up and is very welcome. However, Resolution Foundation analysis published today shows for the first time how little this extra … Continued

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Budget analysis and reaction from the Resolution Foundation

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Public Finances and the Economy

On personal tax allowances – Small gains for the great majority of tax payers excluding the very highest and lowest earners. However three-quarters of the £1 billion goes to households in the top half. On fuel duty – The freeze on fuel duty will disproportionately benefit lower and modest income families. On childcare – Welcome … Continued

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