Osborne urged to drop debt target from Autumn Statement
Carl Emmerson, deputy director at the Institute for Fiscal Studies (IFS), argues Osborne should set a lower target, given that it is unlikely the UK will achieve the government’s goal of having national debt falling as a proportion of GDP by 2016, the Telegraph reported.
He added the Chancellor should instead announce a consultation of a new target.
“Even at the time of the last Budget there was little more than a 50-50 chance that the Chancellor would meet this debt reduction target on current plans,” said Emmerson.
“Getting such a target right, and the timescale in which it should be achieved, is more important than having it in place straight away.”
The Telegraph added Treasury officials are believed to be working on plans for a new supplementary target.