Small Wonder

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The big news, the government is trying to send, with the spending round is about the austerity decade to the end. to convey

in particular, The Thing to be, is That the money pouring into those public services, the most visibly problematic for the Conservatives in 2017 General elections, in front of yet another, relatively forthcoming visit to the polls.

health, education, and The Police are reinforced by the just-in-time.

Overall, departmental spending is rising for the First Time since before The Crisis .

The political strategy is clear: the neutralization of the toxicity of visible spending cuts made to reduce the deficit since The Crisis - to help win the voters in traditionally Labour seats.

And The Good news for the Chancellor and The First Lord of the Treasury, the PM is That there is room for some of these expenses.

borrowing costs are low. And deficits were not reduced, since 17 years.

So we hear a lot about the expression "financial year "headroom".

This is not extra money That can be spent, it is taking extra credits. There is room to borrow more within the government's self-imposed overdraft limit of 2% of the value added in the National Economy .

How much headroom?

The Magic figure of £15bn is. It was £27bn, But it accounted for some changes in the way student loans That served the purposes of the support of the Treasury some limits at least.

So £15bn it is, and the majority of the allocated, in announcements to the financing of the NHS, schools, further education, defence, police, and foreign aid.

We are. for more Details on the rest, and there is enough space in the main at least, the inflation-terms increases for all official expenses It is quite a moment.

But The Real question is for how long?

firstly, this is not the ordinary three-year make-expenditure. That effectively delayed until after the discharge. This is a one-year spending round.

It is also disconnected from the Budget. This has the happy coincidence That there are no new independent fiscal forecasts by The Office of Budget Responsibility.

If it had been, it turns out That , because the economy has slowed since March, and also because the deficit is larger than forecast - the £15bn figure could be significantly smaller, perhaps even More Than halved.

No-deal-was-chest

On top of That , it has to be That the height was help by the former Chancellor, and the consequences of no-deal-UK to exit the EU.

The OBR said In July That even in a modest scenario, this could mean That £30 billion a year to The Public finances.

And yet The Plan is not to spend too easy to the headroom That may not be present, But to Go Further in the coming weeks, and you also cut the taxes on fuel, living room and beyond.

no wonder, then, That at the next Budget the government Will tax and expenditure limitations - its tax regulations - to be reviewed.

Generally speaking, the new Chancellor is seeking to establish the credibility of the fiscal policy in its first year of events. In some ways, at least for a few hours, The Shadow Chancellor, whose plans are on paper, to be financed by tax increases, Will .

just The point of the tax environment has been created over the last decades was, to try a certain amount of stability, injection molding, to think some, in the long term, and avoid you to manipulate the temptation to allow forecasts, untenable-Election give-aways.

A pre-Election spending round undermine That .

But That is a small price to pay for the higher prices sought by politicians within a few weeks, a possible choice.

uk economy, economic effects of brexit, uk government spending, spending reviews

Source of news: bbc.com