We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

Osborne tipped to announce public borrowing rise


Chancellor could be set to reveal a rise in the scale of its public borrowing

Article comments

George Osborne is to increase the scale of the UK’s public borrowing in the medium-term, despite his persistent reiteration of the need for more fiscal tightening, according to reports.

The Financial Times insists that Osborne is to blame the “wrong kind of inflation” for forcing his hand on public spending in the medium term during his Budget announcement on Wednesday 22nd.

The chancellor is also believed to be lining up a series of measures that will target high-level tax avoidance, as well as a levy on the use of private jets among the super-rich.

High and rising inflation is squeezing the government’s overall budget, rather than increasing it through expanded tax revenues as is usually the case, Osborne is now expected to explain on Wednesday.

The Office of Budget Responsibility recently highlighted the potential for certain types of inflation to result in an impingement of public finances in the medium term and Britain is said to be facing just such conditions at present.

The latest reports on the state of Britain’s public borrowing prospects rather fly in the face of the suggestion from Ernst & Young’s ITEM Club this week that the Treasury is in line for an £8 billion “windfall” for the financial year.

Ernst & Young has counselled against any sort of “Budget giveaway” on Wednesday but it now looks as if the chancellor is planning certain sweeteners to lessen the country’s displeasure at what the ITEM Club calls the “bitter pill of fiscal retrenchment”.

Share:

Recommended Articles

Comments

Osborne tipped to announce public borrowing rise
Financial Planning

Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unansweredmore ..


Amazon invests $2bn more in India as online retail booms

The announcement comes a day after an Indian retailer got $1bn in fundingmore ..

Twitter buys NY image start-up Madbits

Madbits uses deep learning techniques to understand the content of an imagemore ..

Barclays posts 7% fall in pretax profits

Barclays’ costs fall 4.5% with increased digitisationmore ..

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Stay ahead of the curve

CFOs used to low interest rates ignore working capital optimisation at their perilmore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *