Chancellor Gordon Brown's borrowing and debt rules will not be possible to maintain unless taxes are raised by £11bn annually, according to analysis from the Institute of Fiscal Studies.
The FT says the IFS’ annual “green budget” suggests the government will fall £6.5bn short on its Golden Rule of only borrowing to invest over the business cycle.
Every scenario considered by IFS and investment bank Morgan Stanley suggests the government would be forced to break its rule of keeping public debt below 40% of GDP, the FT writes.
The Times says the criticism is compounded by a review of Brown’s Pre-Budget Report by the Treasury Select Committee that suggests the Treasury has overestimated corporate tax receipts.
The Treasury is forecasting rises in such receipts of 15% this fiscal year and 25% next, against rates of 8% and 5.5% respectively estimated by the City, the paper notes.
A REVIEW OF THE FSA’s enforcement procedures has been announced, reports The Daily Telegraph.
The review, announced yesterday, comes after the Financial Services and Markets Tribunal ruled the regulator’s procedures were flawed in relation to its investigation into alleged mis-selling of endowments by Legal & General. Fee increases for some 60% of regulated firms are expected to be kept below 2.5% for the next year, while the record £22m in fines levied last year will be offset against fee increases for those firms fined.IFAonline
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