£30bn windfall gives Chancellor the scope to end austerity – but it continues for lower income households

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Public Finances and the Economy

A £30bn borrowing boost has given the Chancellor more than enough fiscal firepower to end austerity in his upcoming Spending Review, the Resolution Foundation said today (Wednesday) in response to the Spring Statement. The OBR delivered a slighter weaker outlook for economic growth this year – down from 1.6 to 1.2 per cent – meaning … Continued

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Brexit votes showdown means Spring Statement will set out but not answer big questions facing UK economy 

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Public Finances and the Economy

The challenges of subdued business investment, stretched consumers and austerity – all of which are coming to the fore as Brexit uncertainty grows – pose major questions for the UK economy that are unlikely to be answered in the forthcoming Spring Statement, according to a new report published today (Monday) by the Resolution Foundation. Spring … Continued

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UK’s economic slowdown puts further strain on stagnant living standards

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Public Finances and the Economy

Commenting on the ONS’ preliminary estimate of GDP growth in Q4 2018, which showed that growth has slowed to 0.2 per cent (barely a third of the UK’s pre-crisis average of 0.7 per cent) and contracted sharply in December (by 0.4 per cent), Research Director James Smith said: “Economic growth slowed markedly towards the end … Continued

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Bank of England’s forecast for weakest growth since the crisis poses a major risk to living standards

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Public Finances and the Economy

The Bank of England’s reduction of its forecast for economic growth from 1.7 per cent 1.2 per cent this year would represent the lowest growth since the financial crisis, and poses a major risk to living standards, the Resolution Foundation said today (Thursday) in response to the latest Inflation Report. The Foundation notes that if … Continued

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UK’s tax relief bill has grown to £164bn – more than the country’s entire health spend

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Public Finances and the Economy

The UK’s tax relief bill has grown to a record £164bn in 2018-19 – underlining the need for greater scrutiny of these reliefs – the Resolution Foundation said today (Thursday) in response to the latest annual HMRC tax statistics. Resolution Foundation analysis shows that these reliefs, which amount to significantly more than the entire health … Continued

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ONS’ decision to bring student loans onto the books will raise borrowing and sets backdrop to post-18 education reforms

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Public Finances and the Economy

Commenting on the ONS’s decision today (Monday) to change the accounting of student loans, Matt Whittaker, Deputy Director at the Resolution Foundation, said: “Today’s decision by the ONS to bring the cost of student loans onto the books when they are issued could have major implications for the government, despite reflecting an accountancy change rather … Continued

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