UK could see a £30Bn drop in tax revenue due to slow economic growth
Just before the release of the much anticipated UK Autumn Statement 2016, several research projects show that tax income could fall below £30Bn below the predictions as a result of lower than expected growth throughout the year. With some studies showing that the UK could have to loan over £20Bn if there are no amendments to the current policy.
The studies warn of increased austerity measures in the coming months; however one expert proposed a way to reduce the impending mitigations. “A feasible solution may be to delay the planned fiscal tightening, or implement spending cuts within the public sector at a slower rate than currently planned.” He stated.
Based on research by the Office for Budget Responsibility, new measures could also be announced during this uncertain time. With the most efficient options being to increase investment spending; while reducing VAT, National Insurance contributions or even income tax.
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