The Treasury Committee's report on the Pre-Budget Report 2008 (Cm. 7484, ISBN 9780101748421) considers that the balance of risks to the Treasury's forecast, for a swift recovery in economic growth for 2010 after a significant decline in output in 2009, is on the downside. The report highlights the lack of bank lending as the single most critical problem for the economy in the near term. The overall effect of the fiscal stimulus remains uncertain, the cost of the reduction in VAT is considerable and, in the view of the majority of commentators, the Treasury's analysis of its impact is an optimistic one. The report notes that the risk of a self-reinforcing deflationary cycle exists in the UK economy at present and recommends that the Treasury prepare and publish the actions it may consider taking should a period of qquantitative easingq be needed. While the need for lower interest rates to maintain economic growth is crucial at the present time, the needs of savers must not be forgotten and the Treasury should consider measures that will also support savers at this difficult time. The report notes with concern that the Pre-Budget Report contains no policy measures which will significantly advance meeting the 2010 child poverty target.The HMRC tax credits helpline does not say, aquot;You are eligible for HBandCTB. ... do not go back to the council and get a bit of HB or CTB or both, and there are people in the tax credit system who are being underpaid a 900, 000 underpaid.
|Title||:||Pre-budget Report 2008|
|Author||:||House of Commons Treasury Committee|
|Publisher||:||The Stationery Office - 2009-01-28|