The £12bn cuts in the welfare budget remain, allowing the Chancellor to stick to his original target of a surplus of £10bn by 2019/20.
Yael Selfin, Head of Macroeconomics at KPMG, comments:
“Higher short term forecasts for the UK economy help the Chancellor’s numbers, and despite the climb down on tax credits, the £12bn cuts in the welfare budget remain, allowing the Chancellor to stick to his original target of a surplus of £10bn by 2019/20. This should give him some room for manoeuvre in the coming years should more spending be required, as he will still be able to stick to a surplus as promised ahead of the next election.”
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