Tax receipts are unlikely to meet forecasts for the year reports the OBR.
As noted earlier, there are a number of factors that mean that receipts growth for the
whole of 2014-15 is likely to be lower than forecast in the March EFO. These include
evidence that the effective tax rate on labour income has been lower-than-expected
this year; stamp duty land tax receipts have been reduced by lower-than-expected
property transactions; and lower oil and gas prices weighing on North Sea
corporation tax and petroleum revenue tax receipts.
Fresh from seeing a drop in borrowing, Georgie-boy Osborne is now faced with the prospect of thinking about tax hikes into an election year.
Whatever you make of the jobs market there’s no escaping the tax numbers and what it means for the country’s coffers. Low wage growth, short contracts, less hours is not good for government income.
You stick an additional “IR” up there in the title if you want too
