Political imperatives versus deficits

Article Abstract:

The UK Nov 1995 Budget takes place at a time when the chancellor is seeking to reduce taxes, but the government is constrained by its high borrowing levels. Tax cuts will come from the 1996 to 1997 fiscal year, so borrowing has to be reduced in that year. Economic advisers argue that tax cuts should be geared to lower income groups, but the government is likely to reduce the standard rate of tax. Reductions in interest rates would benefit the UK economy, and lower tax cuts would allow interest rates to be reduced.

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Cruel price of tax cuts

Article Abstract:

UK taxes are likely to be reduced by some 3 billion pounds sterling and this could lead to problems if the government cannot control public spending. Taxes may have to be raised again if spending cannot be controlled. The UK chancellor, Kenneth Clarke, argues that rises in interest rates should be used to control inflation and fiscal policy should be used to ensure that public finances are sound. Interest rates may therefore rise if UK tax cuts fuel inflation.

Public Finance Activities, Fiscal Policy

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Mr Brown's elusive 73 billion pounds sterling giveaway

Article Abstract:

British fiscal policy and the Mar 2001 Budget and its impact on growth are examined in detail.

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