What a shambles

Article Abstract:

UK fiscal policy has tended to be geared to short-term goals, and some problems which should be tackled have been ignored. These problems include the way the welfare state functions. Poorer people are deterred from seeking work by high marginal tax rates if benefit losses are taken into account. There is also no distinction made between government investment which brings long-term benefits, and consumption which does not. This can lead to lower investment levels. The tax system is also unnecessarily complicated, and there is too much secrecy over major spending decisions.

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Clarke has room to cut tax, think-tank says

Article Abstract:

The UK Institute of Fiscal Studies (IFS) sees a reduction of UK income tax of 3 billion pounds sterling as possible, so long as government spending is also reduced. The personal allowance could be raised, the basic tax rate could be lowered or the lower-rate tax band could be extended. These measures would not help those on the lowest incomes, argues the IFS. The IFS argues that spending on infrastructure should not be reduced. A key issue is how public spending can be controlled when the public expects services of a high standard in areas such as education.

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Get ready for when the brakes go on

Article Abstract:

The UK government has increased interest rates by 0.25% and further increases are likely leading to a rate above 8% in 1998. The budget deficit will have to be cut in 1997 no matter which political party is in power. The expansion of the economy is so strong that a 0.25% rise in rates will have little impact. Consumer spending is forecast to grow by 3.7% in 1997 and has not grown so fast since 1988. Equities could be affected by lower earnings growth and government securities may become more attractive.

Securities and Commodity Exchanges, Security and commodity exchanges, Securities Exchanges, Stock-exchange, Stock exchanges, Exchanges, Interest rates

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