Chancellor faces tougher choices and tax rises if Britain is to ‘reach the end of the tunnel’ on austerity

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Public Finances and the Economy

  The Chancellor will need to hope for better forecasts or raise taxes if he’s to stick to his goal of eliminating the deficit and driving significant reductions in debt, while ending the UK’s unprecedented squeeze on public spending. This is according to the Resolution Foundation’s overnight analysis of the Spring Statement 2018 published today … Continued

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Just about managing families set for biggest year of benefit cuts since 2012

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Tax and Welfare

Benefit changes coming into effect from 9 April are set to save around £2.5bn – the second biggest welfare saving in a single year since the crash – and will significantly squeeze incomes of ‘just about managing’ families – according to new Resolution Foundation research published today (Sunday). While the Chancellor has downplayed the prospect … Continued

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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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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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