Autumn Statement 2013
HC 826, Ninth Report of Session 2013-14 - Report, Together with Formal Minutes Relating to the Report
- House of Commons - Treasury Committee
- TSO (The Stationery Office)
In the report 'Autumn Statement 2013 (HC 826)', the Treasury Committee examines the policies and forecasts presented in the December 2013 publications 'Autumn Statement 2013' and 'Economic and Fiscal Outlook: December 2013' (see below).
The report concludes that since around 43% of departmental expenditure limits are ring-fenced, public expenditure control on the scale required to address the deficit will be increasingly difficult. Ring-fencing reflects public priorities, but the preferences of the public are not equally strongly held for all areas. For example, support for the 33.5% cumulative real increase in aid over the course of this Parliament appears to be lower than for health and schools.
The Committee remains concerned about the impact of the government's Help to Buy mortgage guarantee scheme. An abrupt end to the scheme could distort the market, as could announcements which radically alter people's expectations.
Forecasts of additional revenue from many anti-avoidance measures are inherently uncertain, and it can be difficult to establish how much revenue is raised by any partucular measure even after the event. The Committee warned in its report on the Autumn Statement 2012 that the forecast revenues from the UK-Swiss agreement, at £5.3 billion, were subject to uncertainty and that the proceeds may not meet expectations. These concerns appear to have been justified.
The Office of Budget Responsibility should look again at how the Government accounts for projected revenues, based on previous experience. The more transparency about the yield, and therefore each proposal's effectiveness, the better.
|Format||Paperback||Published||08 Mar 2014|
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