Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

On the up

The economic outlook is improving, says the Institute for Fiscal Studies, but problems lay ahead

KEY POINTS

  • Real wages are likely to rise in 2014.
  • Increasing the personal allowance further may not help the lower paid.
  • Does spending on childcare need to increase?
  • Cap the tax-free pension lump sum.

The economy is growing but do not be lulled into a false sense of security said Paul Johnson director of the Institute for Fiscal Studies (IFS) when he introduced the think-tank’s 2014 Green Budget on 5 February.

The additional spending cuts proposed in autumn put the UK on course to have in 2018/19 its first budget surplus since 2000/01. Even so national debt in that year is still forecast to be 76% of national income.

Just paying the interest on this debt is forecast to take up nearly 4% of national income and...

Only subscribers may read the full article

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.
back to top icon