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You are here Research Modelling reforms to the tax and benefit system

Modelling reforms to the tax and benefit system Current

personal finances , taxation , welfare

 

Pros and cons: budget stimulus options

14 Mar 2012

Following the release of the latest IPPR report, Kayte Lawton weighs up George Osborne’s economic stimulus options. The measures range from cutting taxes to increasing spending on tax credits / benefits and increasing spending on infrastructure.

The OBR believes that infrastructure spending will give the biggest boost to the economy but that's a slower option. Whereas a cut to VAT, income tax rates and NI would be quicker and is easy to reverse once the economy is starting to grow.

Not one of the measures ticks all the boxes, instead: 'it's a case of weighing up the options really carefully'.

Kayte Lawton weighs up the chancellor's options for an economic stimulus