12-10-2007
Chancellor Criticised For Pre-Budget Investment Increase
News from Simply Business - independent providers of business insurance, business finance, landlords insurance, buy-to-let mortgages & commercial mortgages.
ritain's chancellor Alistair Darling has been criticised for the inclusion of an "unfunded spending increase" in Tuesday's pre-Budget report, it has emerged.
According to reports, this week's announcement includes an additional spending increase of £2 billion for investment purposes, which the Institute for Fiscal Studies (IFS) believes will be funded by a rise in borrowing levels by the government.
The IFS is a UK-based organisation specialising in research into public policy and British taxation issues, in addition to other areas such as pensions, poverty and saving. "Are we really supposed to believe that the Treasury has suddenly discovered some vital pieces of capital investment that need to be done in 2010-11 that it was unaware of in March?" said Robert Chote, director of the IFS.
"Heaven forbid that shorter-term political considerations may have played a role," he added. Moreover, Mr Chote has also expressed concern that the country's projected budget deficit increase over the course of next year - and for the final months of 2007 - could worsen as long as the current financial market difficulties persist. Indeed, Mr Chote goes even further by explicitly stating that the exchequer can expect to see a reduction in corporation and income tax revenues of £3 billion and £4 billion respectively, over the course of 2008.
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