Instead of being a critic of the Prime Minister, Dr Budd should tell us why the OBR forecast faster and rising growth from 2010 onwards in each of its forecasts. Why did they have to constantly scale them back? They knew the plans for spending and taxing and did not think they got in the way of good growth. Tomorrow on www.johnredwood.com I will be offering one of the main reasons the OBR has been so off target. It’s nothing to do with deficit reduction. The OBR in Mr Chote’s letter accept that they took into account Labour’s tax rises and capital project cuts, and the further measures the Coalition took in June 2010, and still came up with forecasts of rapid growth for most of the Parliament. They have subsequently revised these down for reasons unconnected with the policy.
About John RedwoodJohn Redwood has been the Member of Parliament for Wokingham since 1987. First attending Kent College, Canterbury, he graduated from Magdalen College, and has a DPhil from All Souls, Oxford. A businessman by background, he has been a director of NM Rothschild merchant bank and chairman of a quoted industrial PLC.
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