Prior to their introduction, the existing system will be made “more consistent and better focused”, a Government source said.
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While not hopeless – January typically finds an excess thanks to an inflow of self-assessment income tax receipts – it remains improbable the chancellor will meet the GBP69.5bn OBR outlook without serious reductions at next week’s Autumn Statement.
But British Chambers of Business economist David Kern was a bit more positive, stating: “This economic year up to now the federal government is producing advancement in reducing the deficit, and there’s however a realistic possibility that they will realize the goal occur the July budget”.
Mr Osborne was forced to delay his programme of cuts – pending changes to improve support for the poorest – after the plans were defeated by the House of Lords.
School budgets are likely to see real-terms cuts of 8% per pupil during the next five years.
Trying to lower the temperature before Wednesday’s announcements, the chancellor told the BBC’s Andrew Marr show: “I’ve read all these reports in the newspapers that I’m at war with various members of the cabinet”.
Let’s start with the Spending Review…
Mr Osborne said the move would put the United Kingdom second only to the U.S. in carrier capability and mean it could respond to threats “wherever and whenever necessary”.
A Scottish government spokesman said: “Despite United Kingdom government cuts of almost 10% to the Scottish budget, local government finance settlements have been maintained over the period 2012-16, with extra money for new responsibilities, including an additional £70m every year since 2008/09 to fully fund the council tax freeze, with the total settlement in 2015-16 over £10.85bn”.
Labour Shadow Chancellor John McDonnell was scathing about Osborne’s comments, saying he was appalled that the idea of cutting back on police numbers was even being discussed, particularly in the wake of the Paris terror attacks.
“Of course the threat is omnipresent but I am absolutely confident we are going to have the resources to deal with it”. They are often announced in the Autumn Statement now as well.
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“Since 2010, we have really begun to correct that”. “If he’s got his eye set on moving next door, he should take heed of those voices telling him not to go that strongly on cuts”. “He must reverse his tax credit cuts and fully protect frontline policing from any cuts”.
