The Chancellor of the Exchequer, George Osbourne, presented his Autumn Statement to Parliament on Wednesday, with the changes in Stamp Duty Tax grabbing most of the news headlines.
However, Osbourne also updated Parliament on wider economic landscape and the Budget Deficit situation. In their report that accompanies the Chancellor’s speech, the Office for Budget Responsibility (OBR) said public spending would fall from £5,650 per head in 2009-10 to £3,880 in 2019-20.
Public spending as a proportion of gross domestic product is projected to fall to 12.6% in 2019-20, its lowest level since the 1930s.
The Budget Deficit is expected to be more than £90bn this year, and although the over all figure has halved since 2010, it is not closing as fast as the Government would have hoped.
OBR chairman, Robert Chote, warned of a “very sharp squeeze” in the next parliament.
Interest Rates are also expected to remain at record lows well into 2015, and possibly beyond, meaning savers need to look beyond Building Societies if they are to earn a good return on their money.
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