Budget 2010 - Sound public finances
Submit Articles Back to Articles
Issued 24 march 2010
Sustainable public finances are essential for strong and sustainable economic
In common with other nations, public borrowing in the UK has risen in the
short term, due for example to the impact of the recession on tax receipts.
This borrowing has also helped finance the Government’s action to help the
economy through the downturn. The Government will continue to provide targeted
support to businesses and households during the early stages of the economic
recovery. However, in the medium term the Government - like any business or
household - must live within its means.
In autumn 2008, the Government set out that it would reduce the level of
public borrowing. The plan is to halve the level of public borrowing as a share
of the economy over four years. This plan is based on:
- savings from reducing spending growth; taking tough decisions on public
- Budget 2010 sets out more detail on cuts and efficiencies and the
medium-term path for public spending;
- tax increases, with the biggest burden falling to those with the highest
- a return to sustainable growth in the economy
The Government has underpinned its commitment to sound public finances in new
laws that place binding duty on the Government to meet this plan.
The following chart sets out the sources of Government receipts:
About the Author
© Crown Copyright. Material taken from HM-Treasury.
Reproduced under the terms and conditions of the Click-Use Licence.
Follow us @Scopulus_News
Article Published/Sorted/Amended on Scopulus 2010-03-25 10:51:23 in Economic Articles