The coalition government has restive backbenchers on both wings seeking to fast-track tax reforms that promote fairness and create a platform for economic growth. These are rarely complementary agendas, so the Chancellor will have a difficult job satisfying their demands.
Despite recent downgrading of the UK’s outlook ratings, the Chancellor will be able to announce progress in the phased reduction of the fiscal deficit, and so the opportunity in the middle of the parliament presents itself, allowing Osborne to focus upon further authentic tax reforms for the remainder of this parliament. This will hopefully permit the UK to retain its AAA rating in the absence of a cataclysmic event out of his control in the European or Global economies.
-Thomas Story is tax director at BDO LLP. The opinions expressed are his own. Join Reuters for a live discussion with guests as UK Chancellor George Osborne makes an emergency budget statement at 12:30 p.m. British time on Tuesday, June 22, 2010.-
Ten key tests by which Chancellor George Osborne will be judged when he delivers the emergency budget on Tuesday:
Thomas Story is tax director at BDO. He will participate in a Reuters Budget live blog at noon GMT on Wednesday, March 24, 2010. Please tune in and join the discussion.-
The March 2010 Budget, to be held next Wednesday, will inevitably be highly political as it is effectively the starting gun for the general election campaign. In this context, further significant fiscal measures to tackle the 178 billion pound government deficit will almost certainly be postponed.