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ARTICLE · 24 MARCH 2010

UK Budget - Immediate Reactions

Deloitte
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Although widely billed to be a political knock-around, in truth the 2010 Budget was as much about delivering a message to the financial markets -that there's a steady hand on the tiller.

United KingdomTax
Deloitte Tax Group
Deloitte Tax Group
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Key measures of interest to everyone

  • Although widely billed to be a political knock-around, in truth the 2010 Budget was as much about delivering a message to the financial markets -that there's a steady hand on the tiller.
  • The forecast for public sector net borrowing for the current year has been reduced by £11bn (from £178bn at the PBR to £167bn). This brings the UK's net debt to 54% of GDP, which is actually better than France, Germany or the US.

The Chancellor also forecasts that the deficit will be more than halved over the coming 4 years, flowing from a combination of tax raises (predominantly from highly paid individuals) and efficiency savings.

  • In absolute terms, the Budget measures are dwarfed by those announced in the PBR (the PBR forecast to raise £8.5bn over 3 years, compared to the Budget's giveaway of £560m over the same period). Modest tax increases will fund equally modest giveaways.

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