Connect with us

Hi, what are you looking for?

Investing

Budget delay on cards as Rishi Sunak fails to name day

Speculation that the chancellor will delay his budget until next year is mounting after he instructed the spending watchdog to publish new forecasts without announcing an accompanying fiscal event.

In a letter to the Treasury select committee, Rishi Sunak said he had asked the Office for Budget Responsibility to prepare an economic and fiscal forecast to be presented to parliament on October 27.

The OBR’s document usually accompanies a budget or spending review but in a break from normal protocol, Sunak did not announce either. The OBR is legally required to publish two forecasts a year that can simply be released to parliament.

Andrew Goodwin, UK economist at Oxford Economics, said: “It is unusual for the date to be announced like this. Given the unusual choreography, it could well mean the budget will be delayed. Or perhaps the Treasury is deferring a decision until closer to the time.”

A three-year spending review is planned for the autumn, for which a new OBR forecast is required. Each Whitehall department has been instructed to find savings of 5 per cent but the formal launch of the process has been delayed until after the parliamentary recess.

Since changes made in 2017, annual budgets are meant to be in November or December to give business time to implement tax rules before the new financial year begins the following April. However, in 2019 the budget was delayed until the following March because of the December general election. In 2020, the autumn budget was pushed back to March 2021 because of the pandemic.

Sunak is considering delaying the budget until the spring once again, when the underlying state of the economy should be clearer, as The Guardian reported this month. The end of furlough in September, the withdrawal of tax breaks and volatile inflation are expected to make the autumn a particularly difficult time to produce reliable forecasts.

The budget is when tax changes are announced and Sunak will announce his fiscal rules. He has said he wants to put the public finances on a more sustainable footing, by paying for all day-to-day spending out of receipts and getting debt falling as a share of GDP.

The public finances have proved stronger than expected thanks to the pace of the recovery but higher interest rates have increased debt servicing costs since the OBR’s last outlook.

Goodwin said: “They [ministers] need to give the OBR sufficient notice, so they may have ensured they can go ahead if they decide they are ready. And if they decide they are not ready, they can still ensure the OBR fulfils its obligation to publish two forecasts per year.”

Treasury sources said that no decision on the budget date has been made.

Read more:
Budget delay on cards as Rishi Sunak fails to name day

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

AllDay Supermarket has tapped PayMaya to power its self-checkout counters with cutting-edge technology to elevate customers’ grocery shopping experience. A first for the Philippine retail industry, AllDay Supermarket...

Economy

INFLATION in the first eight months stood at 4.4%, quicker than the central bank’s 4.1% average inflation forecast for 2021. — PHILIPPINE STAR/ MICHAEL...

Economy

By Kyle Aristophere T. Atienza, Reporter PHILIPPINE President Rodrigo R. Duterte’s political allies — at least those who are running for the country’s top...

Economy

The Balagtas Station of the Philippine National Railway Clark Phase 1 Project is currently under construction. Photo taken on June 14. — PHILIPPINE STAR/...

Economy

A SENIOR economist at the Asian Development Bank (ADB) said a local bourse’s program for micro, small, and medium enterprises (MSME) is key to...

Economy

GNPower Dinginin’s commercial run moved to Q3 2022 By Angelica Y. Yang, Reporter THE management of GNPower Dinginin Ltd. Co. (GNPD) said the timeline...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Economy

Ivermectin, an existing drug against parasites including head lice, has had a checkered history when it comes to treating COVID-19. The bulk of studies...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!