The squeeze on pay packets and falling income tax receipts mean George Osborne will miss his short-term budget targets, the government’s fiscal watchdog said, as it predicted public spending will drop to an 80-year low by the end of the decade.
Britain’s recovery is expected to start running out of steam next year as the next government squeezes public spending and the hoped-for boost to exports fails to materialise, according to the Treasury’s independent forecaster.
The coalition government borrowed more than expected in June, putting chancellor George Osborne further off course in his plan to reduce the deficit.
Soaring house prices are likely to outstrip pay rises for at least the next five years ad possibly for decades to come, the government's official forecaster has warned.
George Osborne has received a boost as he puts the finishing touches to his autumn statement, as official figures showed stronger tax receipts from the gathering pace of the economic recovery are helping to boost the public finances.
We've observed before how the UK's Office for Budget Revisionism has been leading the creation of the alternative wing of financial comedy by satirising economists' penchant for dodgy predictions with forecasts so misguided they seem deliberately bad.
A tax windfall from Swiss banks has helped the UK post a bigger improvement in its public finances than expected, giving a boost to George Osborne ahead of his spending review next week.
Chancellor George Osborne was "spared blushes" thanks to a slightly better-than-expected outturn for last year's public finances, economists said, after official data showed the deficit edged lower.
Professor Michael Woodford of Columbia University says governments shouldn't create money and give it to the banks as quantitative easing.
Napoleon always said he wanted lucky generals, and by that token David Cameron chose the wrong man in George Osborne. Even when the chancellor received some desperately needed good news – as he did on the day after the budget – it came with a nasty sting in the tail.