Tax predictions for the upcoming Autumn Budget.
The government has been handed another challenge as borrowing figures deteriorated this summer, constraining its ability to announce large spending plans in the short term. Cumulative levels of borrowing in the current financial year reached £16bn in April to July. Based on average borrowing patterns from the last three years, borrowing for the full financial year is set to be around £5bn over the Office for Budget Responsibility’s March forecast of £29.3bn.
The extra borrowing implies that meeting the fiscal targets set by the previous Chancellor will be more difficult, as the headroom for any extra spending could shrink to just £22bn.
With a new Prime Minister and Chancellor in office, Brexit still on the horizon and political upheaval expected in the autumn, predicting tax announcements for the Autumn Budget feels quite dicey.
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