We needed dose of fiscal realism, says IoD
By Andy Pearson
The Institute of Directors (IoD) in Wales has responded to the Office for Budget Responsibility (OBR) growth forecast revision.
Robert Lloyd Griffiths, IoD director for Wales, said: “We needed a dose of fiscal realism and so lowering GDP growth and increasing the structural deficit forecast is absolutely right.
“But in cutting the deficit the Chancellor needs to go much further and faster than financial markets expect.
“The OBR forecast shows a deterioration in the structural deficit compared to the Budget, but the IoD believes the Chancellor should still aim to move this into surplus by 2014.
“Just as important as the scale of deficit reduction is the way it is done. The fiscal tightening should be done through lower spending not higher taxation. The more the deficit is reduced by higher taxes the greater the risk of a double-dip recession.”
Tags: Institute of Directors, IOD, OBR, Office of Budget Responsibility, Robert Lloyd Griffiths
