OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth

OBR chair Robert Chote today said there was no evidence George Osborne's flagship cutting of the 50p top rate of tax in the budget will promote growth.

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The chair of the Office for Budget Responsibility (OBR), Robert Chote, today said there was no evidence George Osborne’s flagship cutting of the 50p top rate of tax in the budget will promote growth.

Robert-Chote-George-Osborne
He told The Guardian the OBR’s analysis was that there was no evidence to show that the measure would have a positive effect of the kind mentioned by Osborne in his budget speech, in which the chancellor said the cut would improve Britain’s competitiveness.

Chote says:

We didn’t feel that there was a strong enough evidence base to say our long-term or medium-term view of the economy is now more optimistic than it was beforehand as a result of that measure.”

In a further slapdown to the Tory right, who in addition to cheering Osborne’s slashing of the top rate of tax for the rich (while taking more from the poor), clamour for a euro break up and Greek exit, Chote warns such a scenario risks plunging the UK into a “long-term recession”.

He adds:

“The concern is that you end up with an outcome in the eurozone that creates the same sort of structural difficulties in the financial system and in the economy that we saw in the past recession, and that that has consequences both for hitting economic activity in the economy, but also its underlying potential.

“And it’s the latter which has particular difficulties for the fiscal position, because it means not just that the economy weakens and then strengthens again – ie, it goes into a hole and comes out – but that you go down and you never quite get back up to where you started.”

 


See also:

Europe’s Right still full-steam ahead on mad dash for austerity 16 May 2012

Balls and Mandelson call for Britain to take lead on growth plan for Europe 14 May 2012

Will President Hollande be able to turn France – and the Euro Area – around? 8 May 2012

Even Tory voters oppose abolition of 50p rate 19 Mar 2012

It’s official: the 50p tax rate raises revenue 9 Jan 2012


 

As Left Foot Forward noted on Monday, eurosceptics should beware what they wish for.

 


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29 Responses to “OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth”

  1. Alan Gibbons

    Frm earlier: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth: //t.co/70w5XnqM by @ShamikDas

  2. Pete Bowler

    RT @leftfootfwd: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth //t.co/dNgJSdiw

  3. Shamik Das

    Frm earlier: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth: //t.co/70w5XnqM by @ShamikDas

  4. Genial Jim

    Frm earlier: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth: //t.co/70w5XnqM by @ShamikDas

  5. Mark Ashberry

    Frm earlier: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth: //t.co/70w5XnqM by @ShamikDas

  6. Iain Wood

    Frm earlier: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth: //t.co/70w5XnqM by @ShamikDas

  7. Nicole Reece

    RT @leftfootfwd: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth //t.co/JbysTv8u

  8. Rosie

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  9. BevR

    RT @leftfootfwd: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth //t.co/BBMCNORH

  10. Alan Cowan

    Frm earlier: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth: //t.co/WGhWTlro by @ShamikDas

  11. BevR

    RT @leftfootfwd: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth //t.co/BBMCNORH

  12. Alex Braithwaite

    RT @leftfootfwd: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth //t.co/AhOPLYgS

  13. Janet Graham

    Frm earlier: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth: //t.co/70w5XnqM by @ShamikDas

  14. liane gomersall

    RT @leftfootfwd: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth //t.co/MSiynJDD

  15. H. O.

    RT @leftfootfwd: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth //t.co/r9nXlZGr

  16. John McNeill

    RT @leftfootfwd: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth //t.co/MSiynJDD

  17. Look Left – The Tory Olympic legacy, Osbornomics under siege and IDS | Left Foot Forward

    […] comments of Robert Chote, the chair of the OBR, who told the Guardian on Friday there was “no evidence” Osborne’s 50p tax cut, the flagship measure in the now widely-derided budget, will promote […]

  18. Brian Tomkinson

    Osborne's 50p tax rate cut doesn't actually do anything for economic growth: //t.co/fC57nuj4 #PMQs

  19. paul smith

    Osborne's 50p tax rate cut doesn't actually do anything for economic growth: //t.co/fC57nuj4 #PMQs

  20. Knut Cayce

    Osborne's 50p tax rate cut doesn't actually do anything for economic growth: //t.co/fC57nuj4 #PMQs

  21. Christian Wilcox

    The OBR says there is no evidence cutting the 50p Tax rate will create growth: //t.co/PGtjY7uH. #Croydon #Labour (@GavinBarwellMP)

  22. Jane Canning

    Osborne's 50p tax rate cut doesn't actually do anything for economic growth: //t.co/fC57nuj4 #PMQs

  23. Kat Gajdos

    Osborne's 50p tax rate cut doesn't actually do anything for economic growth: //t.co/fC57nuj4 #PMQs

  24. Roger McKenzie

    “@leftfootfwd: Osborne's 50p tax rate cut doesn't actually do anything for economic growth: //t.co/s4t6dZNQ #PMQs”

  25. Edd S.

    “@leftfootfwd: Osborne's 50p tax rate cut doesn't actually do anything for economic growth: //t.co/s4t6dZNQ #PMQs”

  26. ROBIN MACFARLANE

    “@leftfootfwd: Osborne's 50p tax rate cut doesn't actually do anything for economic growth: //t.co/s4t6dZNQ #PMQs”

  27. Foxy52

    There is no evidence that cutting the top rate of tax will promote growth: //t.co/rEmdGHNe #PMQs

  28. Ceri Leigh

    RT @leftfootfwd: OBR chief: “No evidence” Osborne’s 50p tax cut will promote growth //t.co/mLSyUHpk

  29. Tristram Wyatt

    There is no evidence that cutting the top rate of tax will promote growth: //t.co/rEmdGHNe #PMQs

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