Last week the Chancellor gave a brief preview of what to expect in the second Budget of the year in his speech to the Confederation of British Industry (CBI). At the top of his agenda is a major push on productivity to complement the work already done on rebalancing growth and the creation of a Northern Powerhouse.
Osborne said, “Now a lot has been written about the productivity puzzle. Why, for so many years, have British workers been less productive than their German or American counterparts? Why has productivity been so damaged by the Great Recession?”
In many ways, the emergency Budget will go on over the same issues as discussed in the March Budget, however expect an update on the Government’s plan to eliminate the UK’s budget deficit and plans to run a budget surplus of £4bn by the end of the parliament in 5 years.
He said, “On the 8th of July I am going to take the unusual step of having a second budget of the year – because I don’t want to wait to turn the promises we made in the election into a reality … And I can tell you it will be a budget for working people.”
Latest growth forecasts from the Office for Budget Responsibility will also be updated especially for the event. Exact details are not out yet, but it’s anticipated that Osborne will outline the details of £12bn of welfare cuts. According to Treasury sources, the Conservatives will also look at child benefit, child tax credit and disability allowances, and include a fresh crackdown on tax avoidance designed to raise £5bn.