This monthly update from the independent UK Office of Budget Responsibility (OBR) is well worth a read. Check it out!
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.
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:
- What are the downside risks for the year?
- What emergency actions should the Government take in risk mitigation?
- How will the Government achieve more rapid cuts in Public Spending because of the depressed Private Sector?
- 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?