"George Osborne has warned he may have to impose bigger than expected cuts to public spending towards the end of the current parliament as the “storm clouds” in the global economy hit economic growth.
In a move to prepare the ground for a sharp deterioration in the public finances in the budget next month, the chancellor said the recent fall in nominal GDP numbers showed the British economy was smaller than expected.
Osborne, who signalled that the cuts would come from efficiencies in government spending, also indicated that he might adopt a flexible approach to his target of delivering an overall budget surplus of £10.1bn by 2019-20. (AtW's comment: translation - surplus will happen in 2039-40, that will give sufficient flexibility he requires)
The chancellor made clear that he might have to embark on a change of course in his budget on 16 March when he warned of global “storm clouds” in an interview with the BBC at a meeting of G20 finance ministers in Shanghai.
He said: “The storm clouds are clearly gathering in the world economy and that has a consequence for lots of countries including Britain. Now we are weathering it better than most, but we’ve just had confirmation that our own economy is not as big as we had hoped.
Osborne has yet to hear formally the OBR’s judgment ahead of his budget. But the slowing of economic growth and falling tax receipts means that the public finances will be distinctly less rosy."
More from the source: George Osborne warns of further cuts as 'storm clouds' gather | Politics | The Guardian
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Yes, well done Gidiot - recovery was going well but you just had to massively increase taxes in the last 9 months, so businesses (who have accumulated money) choose to pay dividends instead of investing and investors taking their money somewhere else where Govt isn't run to Gidiots
In a move to prepare the ground for a sharp deterioration in the public finances in the budget next month, the chancellor said the recent fall in nominal GDP numbers showed the British economy was smaller than expected.
Osborne, who signalled that the cuts would come from efficiencies in government spending, also indicated that he might adopt a flexible approach to his target of delivering an overall budget surplus of £10.1bn by 2019-20. (AtW's comment: translation - surplus will happen in 2039-40, that will give sufficient flexibility he requires)
The chancellor made clear that he might have to embark on a change of course in his budget on 16 March when he warned of global “storm clouds” in an interview with the BBC at a meeting of G20 finance ministers in Shanghai.
He said: “The storm clouds are clearly gathering in the world economy and that has a consequence for lots of countries including Britain. Now we are weathering it better than most, but we’ve just had confirmation that our own economy is not as big as we had hoped.
Osborne has yet to hear formally the OBR’s judgment ahead of his budget. But the slowing of economic growth and falling tax receipts means that the public finances will be distinctly less rosy."
More from the source: George Osborne warns of further cuts as 'storm clouds' gather | Politics | The Guardian
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Yes, well done Gidiot - recovery was going well but you just had to massively increase taxes in the last 9 months, so businesses (who have accumulated money) choose to pay dividends instead of investing and investors taking their money somewhere else where Govt isn't run to Gidiots
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