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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‘Sugar Rush Spring Statement’ sees good news fade quickly as outlook for growth and living standards remains bleak

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Public Finances and the Economy

The Chancellor has set out a ‘Sugar Rush Spring Statement’ – with welcome short-term news on borrowing and growth but the long term challenges of weak growth and pay remain – the Resolution Foundation said today. The Office for Budget Responsibility today delivered a slightly sunnier short-term forecast for the Chancellor, with borrowing for 2017-18 … Continued

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UK’s £155bn tax relief bill costs more than health, transport, justice, home and foreign office budgets combined

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Public Finances and the Economy

  The estimated overall spending on tax reliefs increased to a record £155bn in the last financial year (2017-18), according to Resolution Foundation analysis of the annual HMRC Principal Tax Relief Statistics published today (Tuesday). Adam Corlett, Senior Economic Analyst at the Resolution Foundation, said: “Spending on tax reliefs has grown to a record £155bn … Continued

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Government right to put people’s earning power at the heart of its industrial strategy

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Public Finances and the Economy

  Commenting on the publication of the government’s Industrial Strategy White Paper today, Resolution Foundation Executive Chair David Willetts said: “Given the grim outlook for living standards we heard at the Budget last week, today’s White Paper has the right focus on improving the nation’s productivity, and with it people’s earning power. “A key new … Continued

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Family finances hit by biggest ever productivity growth downgrade

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Public Finances and the Economy

Chancellor makes housing a welcome centrepiece of his Budget The Chancellor has delivered the first post-election giveaway Budget this century despite a grim outlook for the economy and public finances, driven by the Office for Budget Responsibility’s biggest ever productivity downgrade. That downgrade has huge implications for family finances over the remainder of the parliament, … Continued

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Young and middle income mortgage holders will feel biggest short-term pressure on mortgage costs

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Public Finances and the Economy

Barely one in ten families are at risk of an overnight effect of today’s rate rise through higher mortgage costs, with young and middle income mortgage owners facing the biggest cost increases, the Resolution Foundation said today in response to the Bank’s decision to raise interest rates by 0.25ppts. The Foundation’s analysis finds that the … Continued

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