Chief Economist, Simon Rubinsohn answers three hot questions relating to the 2016 UK Budget.
The Chancellor was dealt a difficult hand with the decision of the statistical authority (ONS) to revise down the size of the economy and the financial turbulence at the start of the year. Despite this, he put up a robust performance in delivering the 2016 Budget highlighting the outperformance of the economy against the UK’s major competitors.
Inevitably, there were issues surrounding the fiscal numbers with the budget only returning to surplus in 2019-20 and with a lot of goodwill. But in truth, whether this target is met has little real consequence for the real economy and is more of an issue for the credibility of the Chancellor who has put so much emphasis on this.