Committee slams 'optimistic' Treasury economic forecast

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The Treasury may have underestimated the impact of ongoing market turbulence in its forecast for economic growth this year, the Treasury Committee warns.

It says the Treasury’s growth predictions - used for the latest fiscal projections in the Budget – were more optimistic than the average of independent forecasts. In addition, the Committee says the Treasury may have also got it wrong over plans for the tax treatment of non-domiciles, arguing the focus has been too heavily on wealthy non-doms. The Committee concludes the margin by which the Treasury forecasts it will meet the sustainable investment rule is extremely tight, especially considering the uncertainty surrounding the overall economic situation. John McFall, chair of the Comm...

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