This is a bringing forward of a bringing forward of the government's "medium term" fiscal plans. Originally they were going to be revealed on Nov 23rd, then Oct 31st, and now, at least partially, today. The main reason for this is probably to try to calm down markets, especially for UK bonds and for Sterling exchange rates.
What do you think will be announced? Most commentators believe that the 1p cut in basic income tax will be postponed by a year. Other tax cuts could also be reversed, such as that on VAT for overseas visitors. Might there be something brand new? Some have mentioned a "windfall" tax, most likely on energy producers but maybe even banks. What is certain is that very little will be left of the measures from a few weeks ago that so strongly shocked the economy.
No comments:
Post a Comment