21/03/2012 - In response to the presentation of the 2012/13 U.K. Budget by the Chancellor of the Exchequer George Osborne, OECD Secretary-General Angel Gurría has expressed support for the government’s plans for continued fiscal consolidation aiming at eliminating the fiscal deficit by 2016/17, as well as measures to support growth and jobs.
“The Budget announced today is another important step towards a sound fiscal position for the United Kingdom” Mr. Gurría said. “The confirmation of the UK’s fiscal consolidation programme should keep bond yields low and support the recovery”.
“The government’s intention to find funding for additional infrastructure is welcome, as additional infrastructure investment together with the lowering of the top income tax rate would support growth in the longer term. Other measures that raise revenues from wealthier households and reduce the tax burden on the lower paid will help to ensure fair sharing of the burdens of fiscal adjustment."
Mr Gurria concludes. “As the OECD has stressed previously, structural reforms should be pursued vigorously in order to raise growth and increase equality. The OECD therefore finds it encouraging that additional structural reforms are being discussed and urges the government to pursue further reforms on land planning, education and welfare."