COMMONS

Budget 2008

"Treasury faces major challenge in meeting fiscal rules in face of market turbulence, warns Treasury Committee"

The Chancellor of the Exchequer, the Rt. Hon. Alistair Darling MP, delivered his first Budget on Wednesday 12 March 2008.1 In accordance with past practice, the Treasury Committee held an inquiry into the Budget with a view to reporting to the House of Commons prior to the Second Reading of the Finance Bill.

In its Report the Committee cautioned that the Treasury may have given insufficient weight to the risks of continued financial market turbulence in making its forecasts for economic growth. The Treasury’s growth forecasts used for the latest fiscal projections were more optimistic than the average of independent forecasts.

The Committee also concluded that the margin by which the Treasury forecast that it will meet the sustainable investment rule was extremely tight, especially considering the uncertainty surrounding the overall economic situation.

Report, oral and written evidence | Press Notice | Government Response

Oral evidence

Monday 17 March 2008

Witnesses: Mr David Miles, Morgan Stanley, Dr Martin Weale, National Institute for Economic and Social Research (NIESR), Mr Robert Chote, Institute for Fiscal Studies (IFS), and Ms Bridget Rosewell, Volterra Consulting; Mr John Whiting, PriceWaterhouseCoopers, Dr Martin Weale, NIESR, and Mr Robert Chote, IFS

Tuesday 18 March 2008

Witnesses: Mr Dave Ramsden, Managing Director, Macroeconomic and Fiscal Policy, Mr Mike Williams, Director, Personal Tax and Welfare Reform, Mr Edward Troup, Director, Business and Indirect Tax, Ms Sarah Mullen, Joint Director, Public Spending, Mr Chris Martin, Director, Public Services, and Mr Simon Gallagher, Team Leader, Financial Services, HM Treasury

Wednesday 19 March 2008

Witnesses: Rt Hon Alistair Darling MP, Chancellor of the Exchequer, Mr Dave Ramsden, Managing Director, Macroeconomic and Fiscal Policy, Mr Mike Williams, Director, Personal Tax and Welfare Reform, Mr Edward Troup, Director, Business and Indirect Tax, and Mr Simon Gallagher, Team Leader, Financial Services, HM Treasury

Publications

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    Glossary

    • Reports and associated evidence – Reports of Committee inquires. This category may also include Special Reports where they are used by a Committee to bring matters relating to conduct of its business to the notice of the House.
    • Responses to Reports - Responses may be published as a Special Report, or as a Command Paper. They may also be appended to a Report should the Committee have substantial comments on the Response, in which case they can be found listed under Reports. 
    • Other oral and written evidence - Evidence taken by the Committee that has yet to or did not result in the publication of a Report. This includes transcripts of recent meetings.
    • Estimate Memoranda - An Estimate memorandum is an explanatory note that accompanies a government department’s estimate (a means by which a department seeks authority from Parliament for its spending plans).
    • Correspondence - Correspondence sent from or received by the Committee or its Chair.
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