UK Lawmakers Call For Greater Clarity On Deficit Reduction Plans

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Wednesday, UK's Treasury Select Committee called for greater Government clarity on its plans to reduce the structural deficit. It would be difficult for any current consolidation plan to command universal support, the Treasury Select Committee said in a report.

"The Committee sees no good reason for the Treasury failing to produce more detailed illustrative figures for future expenditure, at least the projected split between Departmental Expenditure Limits and Annually Managed Expenditure," said John McFall, Chairman of the Treasury Committee.

The Treasury targets to slash the deficit to 3.6% of GDP in four years. However, the lawmakers noted that most of the expert witnesses it examined criticized the pre-budget report for not providing enough information about how the government would cut the deficit. Lawmakers also called for future Budgets and Pre-Budget Report to attempt to quantify the downside risks around the structural deficit forecast.

"We consider clarity, even if it is clarity about the degree of uncertainty surrounding the forecasts, as essential to strengthening this crucial credibility. That is what our Report calls for today," McFall added.

Wednesday, UK's Treasury Select Committee called for greater Government clarity on its plans to reduce the structural deficit. (Market News Provided by RTTNews)