Is the Office for Budget Responsibility dead in water?
The shock departure of Sir Alan Budd from the newly formed Office for Budget Responsibility (OBR) is set to cause a major headache for Chancellor of the Exchequer George Osborne. David Blanchflower, one of the leading independent economists in the UK, believes that no credible name would be willing to take the place of Sir Alan Budd after criticism that the office is not actually independent of the UK government.
George Osborne initially set up the OBR to give an outside party the opportunity to comment upon and monitor UK government financial decisions. However, despite the fact that the OBR is not even fully enshrined in law yet it seems as though it is starting to fall apart. There have been accusations that reports have been pushed forward to give the UK government arguments to make certain decisions something which has obviously impacted upon the thinking of Sir Alan Budd.
So far there has been little comment upon the future of the OBR by the UK government but this is something which will need to be addressed sooner rather than later if any credibility is to be maintained. There is no getting away from the fact this is a bitter blow for George Osborne in his early days.
Share this..
Related stories
Should taxpayers bailout small businesses in the short term?
The revelation that six major banks in the UK are coming together to create a £1.5 billion fund to assist the short to medium term funding issues of small operations in the UK has been welcomed across the board. However, there is speculation that the UK government is under pressure to become actively involved in the bailout funding although taxpayers will question why they should be stumping up s...
Read MoreHM Revenue and Customs announces national insurance holiday
HM Revenue and Customs have today announced a surprise national insurance holiday for new companies in the UK in areas of the country likely to be hardest hit by the reduction in public-sector investment. Those who are eligible for the national insurance holiday will be able to claim relief for the first 10 employees they hire in their first year of operation. HM Revenue and Customs believes that...
Read MoreWhat about the additional 90,000 offshore accounts undeclared?
While the UK government has enjoyed something of a success with the recent announcement that 10,000 UK citizens holding money offshore have now declared these previously unknown assets this is not the end of the story. It is believed that an additional 90,000 UK citizens have not taken the opportunity to declare their overseas assets and their overseas income and the UK government will now need to...
Read MoreTax forms 'too complicated'
More must be done to make tax forms and guidance easier to understand, the National Audit Office (NAO) has said.Its report on helping individuals understand and complete their tax forms points out a number of weaknesses in existing procedures.Six per cent of calls to HM Revenue and Customs' (HMRC) telephone helpline service resulted in taxpayers receiving less than complete and correct advice, whi...
Read MoreGovernment wins alleged tax avoidance case
The UK authorities are today celebrating a potentially massive win in the courts when a judge ruled that retrospective tax legislation regarding offshore tax avoidance schemes was not against the human rights of those involved. The case centred round a self-employed IT contractor who was hit with a £100,000 tax bill by the UK authorities relating to income received through an offshore tax scheme....
Read More