Office for Budget Responsibility » Monthly public finance data

United Kingdom

United Kingdom (Photo credit: stumayhew)

English: Oliver Letwin MP, Minister of State, ...

English: Oliver Letwin MP, Minister of State, Cabinet Office (Photo credit: Wikipedia)

English: Francis Maude MP, Minister for the Ca...

English: Francis Maude MP, Minister for the Cabinet Office (Photo credit: Wikipedia)

This monthly update from the independent UK Office of Budget Responsibility (OBR)  is well worth a read. Check it out!

…………………………….Office for Budget Office Responsibility » Monthly public finance data.

The big headline on Twitter is as follows:

Corporation tax receipts likely to remain below March EFO forecast.

There does not seem to be too much good news in this commentary and plenty of downside risk, in my view.

Given the huge spending on Big Four consultants over the last ten years, and the massive investment in ERP systems, it’s surprising that the Public Sector still can’t close their books properly on a monthly basis like any self-respecting Private Sector company.

What amazes me is that Francis Maude and the Cabinet Office are still congratulating themselves on what an excellent job they maintain that they are doing.

I wonder if the Treasury and the Cabinet Office is still calling in their chums at the major consultancies and paying fees of five thousand pounds a day, plus expenses?

For me, here are some open questions:

  1. What are the downside risks for the year?
  2. What emergency actions should the Government take in risk mitigation?
  3. How will the Government achieve more rapid cuts in Public Spending because of the depressed Private Sector?
  4. Will this Government ever be brave enough to face up to the required transformation in the Public Sector, or will further cuts fall on front-line services?

What do you think?

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4 responses

  1. Pingback: £800m a year ‘wasted on empty offices’ – UK Politics – UK – The Independent « Dr Alf's Blog

  2. Pingback: The UK economic outlook: Managing the downside risks – John Gelmini « Dr Alf's Blog

  3. The possible answers to the questions you posed are:

    1) The economy continues to shrink, Greece and possibly another Eurozone country implodes financially and we bail it out before it happens.

    We get embroiled in a wider war in the Middle East and are dragged into a conflict without the military resources to fight it but do so anyway on borrowed money.

    Food price inflation due to the American drought and increased oil prices and fuel prices pushes more people into bankrupcy.

    Credit is tightened by the banks.

    Unemployment in all its forms stays high and the trade gap running at £5 billion gbp a month pushes us further into debt and as we drive less, Petroleum Revenue Tax revenues fail leaving too little money for the NHS

    2) The UK is given a Credit Downgrade.

    3) Taxes are cut, writing down allowances are made more generous, we start public works on a grand scale using Eastern European labour and people from the dole placed on compulsory Workfare.

    A T.A.R.P. programme is initiated, the pace of outsourcing is increased, the Beecroft Reforms are enshrined into emergency law and public holidays are cut to 4 weeks maximum.

    4) No

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