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Text size [+][-]  Thursday March 11 2010GLOBAL EDITION

Considered view
18 Nov 2009 09:47

Fiscal fudge

Context News

Legislation calling for a halving of the fiscal deficit is to be published by the UK government. The fiscal responsibility bill will set out plans to halve the £175bn deficit by 2014 and eliminate it by 2018, according to the Financial Times. The legislation is also expected to commit governments to cut the deficit each year. Chancellors of the Exchequer would either have to comply with the legislation or explain to parliament why they had failed to.

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The government plans legislation to cut the deficit in half in five years. That’s a worthy enough goal. But Brown probably won’t be PM in five years – and the law won’t carry any sanctions if the target isn’t met. There’s a better way to provide fiscal credibility.

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