Costing Britiain: Falling productivity in the public sector

Costing Britiain: Falling productivity in the public sector
Document type
Report
Author(s)
Leach, Graeme Haldenby, Andrew
Publisher
Reform
Date of publication
26 November 2004
Subject(s)
Trends: economic, social and technology trends affecting business
Collection
Business and management
Material type
Reports

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The UK public sector is undergoing a period of dramatic expansion. As a result, Britain’s competitive advantage in regard to taxation is being eroded. Over the period 1996 to 2005, total tax and non-tax receipts in the
UK will rise by 1.7 per cent of GDP. In the Eurozone and the USA, in contrast, they will fall by around 2 per cent of GDP. In addition, the public finances have deteriorated sharply. The Treasury’s estimate for the surplus on the current budget over the economic cycle (used to measure the Golden Rule) has declined from £100 billion in
Budget 2001 to £11 billion in Budget 2004.

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