Budget 2011

Budget 2011

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The report looks at the way the Office for Budget Responsibility has functioned in this, the first Budget since it was permanently established. It raises concerns about the timetable for the economic forecast, noting: the timetable agreed for this forecast and Budget required all decisions which would impact on the economic forecast to be made at least a fortnight before Budget day. It recommended that the timetable should be revisited to provide more flexibility enabling economic shocks and late political decisions to be accommodated. The Committee looked at the economy, public finances, the plan for growth, taxation and the Office for Budget Responsibility. It continues to press for a full review of the OBR including its powers, remit and relationship to Parliament. Also calling for gradual reform of the tax regime and noting the Government's decision to increase the supplementary rate of corporation tax on the oil and gas industry by 12 percentage points in the Budget - less than a year after promising to provide a stable tax regime in the sector -might weaken the Government's credibility in seeking to establish a stable tax regime. The Committee was pleased with the further reduction in corporation tax announced in the Budget as this was a positive measure aimed at boosting growth. With regard to Enterprise Zones it may have some effect in reviving particular areas, but it was noted that almost all the evidence received is unsure about the extent to which they will contribute to UK growth. It is clear that there is still much to be done on the details of this policy.For instance, in the manifesto before the last election there was a commitment to raise the retirement age in 2016; that ... do that would increase growth, rather shorter term than that, is much more significant changes in planning legislation. ... In the north of England, taking my area as an example, we have scores of planning consents for new housing a€” scores of them. ... It is more the sense that there is a long-term commitment to manufacturing in the UK, so they can feel more confidentanbsp;...

Title:Budget 2011
Author:Great Britain: Parliament: House of Commons: Treasury Committee
Publisher:The Stationery Office - 2011-04-09


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