This week, the Treasury has warned of tax rises as they look to close an annual deficit in the government finances in the region of £35 billion. Spending cuts alone will not be enough to ensure that the Government meets its targets on spending and debt.
It was reported that Jeremy Hunt is planning to fill the budgetary shortfall through a combination of 50% tax rises and 50% cuts to public spending. When reviewing the Financial Conduct Authority’s Financial Lives Survey, 12.9 million individuals (24%) have low financial resilience, meaning they would experience difficulties if they suffered a financial shock.
Analysts have warned that there remains little scope for further cuts to public spending after years of austerity under Conservative governments.
Chancellor, Jeremy Hunt, will deliver a financial statement on 17th November.