The annual statement by the Chancellor detailing the government’s plans for spending and taxation over the coming year will take place a week today, at 12.30pm following Prime Minister’s Questions.
Mr Osborne has already announced his spending plans for 2015/6, which has quashed any rumours of pre-election giveaways. The Chancellor plans to balance the books by 2017/17 – a claim which will necessitate a whopping £30bn in either spending cuts or tax rises in the first years of the next Parliament – and furthermore promises that Britain will run a budget surplus in good economic times.
And in a rather prudent planning measure, Mr Osborne also states the Conservative government would adopt a “balanced budget” rule if re-elected in the next parliament, which would be implemented once the current round of austerity cuts has ended. The rule would mean the Government could spend no more than it earned in tax revenues in times of economic growth, and would be overseen by the country’s fiscal watchdog – the Office for Budget Responsibility. In the Chancellor’s own words: “We are fixing the roof while the sun is shining and planning for repair when the storm hits”…(or rather “don’t spend what you haven’t got”!)
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