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from The Great Debate UK:

Key tests for the emergency budget


-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:

1. Do the tax measures make a significant contribution to reducing the fiscal deficit?

The Chancellor is caught on the horns of a dilemma with the promise of various tax cuts contained in the coalition agreement needing to be offset by larger tax rises in the emergency budget to help plug the gap in the government’s finances.  However, this may allow some targeted tax cuts to be introduced from 2011 but only in small steps as the economy improves.