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In the News
25 November 1997
The Chancellor delivers a Pre-Budget Statement. His purpose is to encourage an informed debate and advises that the purpose of the Spring 1998 Budget will be to improve the UK's productivity performance, increase employment and promote economic stability by taking a long-term view. Announcements include: from April 1999 a reduction in Corporation Tax to 30% from 31 % and the abolition of Advance Corporation Tax; £20 in each of the next two winters for pensioners (£50 for those receiving Income Support) to assist with fuel bills; proposals designed to improve work incentives, including childcare facilities and intention to reform both National Insurance for the low paid and Family Credit; a Code for Fiscal Stability, which will provide a legal requirement for a Government fiscal report to Parliament. The Treasury predicts that underlying retail price inflation (RPIX) will rise to 3.0% by the final quarter of 1998 but edge down to its target of 2.5% by the end of 1999. It attaches ranges for real GDP growth forecasts of 2.25%-2.75% in 1998 and of 1.5%-2.0% in 1999. The PSBR is now predicted to be £9.5 billion in 1997198 and £4.5 billion in 1998/99.
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