U.K. Announces Major Deficit Reduction Plan

Chancellor of the Exchequer George Osborne laid out a blueprint on June 22 that is intended to reduce the U.K. government’s deficit by £128 billion (about 10 percent of current GDP) by 2016. Although spending bears the brunt of the burden — 77 percent of the deficit reduction comes from the spending side of the ledger — tax hikes, especially an increase in the value added tax, would also play a … Chancellor of the Exchequer George Osborne laid out a blueprint on June 22 that is intended to reduce the U.K. government’s deficit by £128 billion (about 10 percent of current GDP) by 2016. Although spending bears the brunt of the burden — 77 percent of the deficit reduction comes from the spending side of the ledger — tax hikes, especially an increase in the value added tax, would also play a role in closing the budget gap. Thank you for your interest in Wells Fargo’s Economic Commentary by email. You are receiving this message because you have requested Economic Commentary information and updates sent via email. If you no longer wish to receive these emails, please click on the following link to access the Economic Commentary by email registration page: http://www.wellsfargo.com/economicsemail.

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