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To cut or not to cut? The Chancellor's Budget dilemma
Author(s) -
Sentance Andrew
Publication year - 1995
Publication title -
economic outlook
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.1
H-Index - 8
eISSN - 1468-0319
pISSN - 0140-489X
DOI - 10.1111/j.1468-0319.1995.tb00049.x
Subject(s) - economics , dilemma , public spending , reduction (mathematics) , public economics , keynesian economics , political science , law , philosophy , geometry , mathematics , epistemology , politics
This article analyses the Chancellor's options for the forthcoming Budget and, in particular, the case for tax cuts. James Nixon, John O'Sullivan and Andrew Sentance argue that there is no case for large reductions, with public borrowing still running at an unsustainable rate and reasonable prospects for growth next year. The case for a modest reduction is more finely balanced. Against a background of public spending restraint, a small tax reduction can be seen as an insurance policy against a much weaker economy next year.