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ICAEW responds to today's public sector finance numbers November 2022

Author: ICAEW

Published: 22 Mar 2022

Responding to the public sector finance numbers for February released by the Office for National Statistics today (Tuesday 22 March 2022), Alison Ring OBE FCA, Public Sector and Taxation Director for ICAEW, said:

“Today’s numbers show the impact inflation is having on the public finances as it continues to drive both tax receipts and interest costs higher. The deficit for the financial year is expected to be around £30bn lower than October’s official forecast of £183bn, while tomorrow’s Spring Statement forecasts could see a smaller deficit next year than the £62bn expected before the pandemic.
“Uncertainty about the impact of the war in Ukraine on the UK means it will be extremely difficult for the Chancellor to gauge the level of intervention needed to support households and businesses facing rocketing energy prices if he is to avoid a recession that could permanently damage the economy and the public finances and still leave room for tax cuts in the Autumn Budget.”