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Budget 2016

Budget 2016: Where's all the money coming from?

Jonathan Riley, Head of Tax at Grant Thornton UK LLP, commented: "It could be argued Osborne's opening gambit, while nodding towards the strong recent growth for the UK, massively underplayed the huge future uncertainties that the UK faces, both nationally, globally and economically.  

"OBR forecasts are bleaker, with slowing growth and the debt to GDP ratio actually rising. Lots of grand promises, and cost cutting policies, were announced as well as a continued commitment to balancing the UK’s books by 2020. Osborne went so far to promise that by next year only £1 in every £14 will be debt funded, against  £1 in every £4 when he took the reins at the Treasury. 

"The conundrum is where is all this money coming from the fund these policies? Business rate reductions, cut in Capital Gains Tax, further reduction in corporation tax etc - none of which come cheap. Overall this Budget should be well received by the majority of individuals and businesses alike. However, one could perhaps be bold enough to suggest that Osborne has merely deferred the announcement of any painful cuts to post the EU referendum. 

"Perhaps the Autumn Statement is what we should be holding tight for and when we might really be given the detail of the long term environment in which we should plan."