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You can find the current article at its original source at https://www.theguardian.com/politics/2016/oct/25/uk-budget-deficit-plan-off-target-secret-treasury-document
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| UK budget deficit plan off target – secret Treasury document UK budget deficit plan off target – secret Treasury document | |
| (about 2 months later) | |
| The chancellor’s plans to reduce the deficit are unlikely to get back on track this year, an internal briefing document for ministers has revealed. | The chancellor’s plans to reduce the deficit are unlikely to get back on track this year, an internal briefing document for ministers has revealed. |
| The Treasury document, which was marked “sensitive”, also revealed the UK faced a £700m bill after the EU referendum result, with Britain’s contribution to the EU growing by 25.9% compared with the same period last year. | The Treasury document, which was marked “sensitive”, also revealed the UK faced a £700m bill after the EU referendum result, with Britain’s contribution to the EU growing by 25.9% compared with the same period last year. |
| Treasury sources, who said the document was posted in error on the government’s website, said the most recent payments had been larger than usual because of smaller payments made earlier in the year. | Treasury sources, who said the document was posted in error on the government’s website, said the most recent payments had been larger than usual because of smaller payments made earlier in the year. |
| The briefing warns that the government is “unlikely to bring deficit reduction entirely back on track” and that the “continuing run of disappointing data” meant there was a “severe worsening in the public finances”. | The briefing warns that the government is “unlikely to bring deficit reduction entirely back on track” and that the “continuing run of disappointing data” meant there was a “severe worsening in the public finances”. |
| “For the year to date the deficit is £2.3bn lower than last year; at a fall of 4.8%, well behind the 27.0% reduction forecast,” the document says. | “For the year to date the deficit is £2.3bn lower than last year; at a fall of 4.8%, well behind the 27.0% reduction forecast,” the document says. |
| The chancellor, Philip Hammond, has insisted since October that although the government will not now seek a surplus by 2020, it remains “committed to fiscal discipline”. | The chancellor, Philip Hammond, has insisted since October that although the government will not now seek a surplus by 2020, it remains “committed to fiscal discipline”. |
| A spokesman said that the government was still committed to deficit reduction. “The chancellor has been clear that while the deficit has been cut, it is still too high,” the spokesman said. “The government is committed to balancing the books over a sensible period of time, in a way that allows space to support the economy.” | A spokesman said that the government was still committed to deficit reduction. “The chancellor has been clear that while the deficit has been cut, it is still too high,” the spokesman said. “The government is committed to balancing the books over a sensible period of time, in a way that allows space to support the economy.” |
| The shadow chancellor, John McDonnell, said the document demonstrated why Hammond had been reluctant to mention fiscal targets. | The shadow chancellor, John McDonnell, said the document demonstrated why Hammond had been reluctant to mention fiscal targets. |
| “It refers to a run of disappointing data and the unlikelihood of getting deficit reduction back on track, officially confirming the Tory failure on the economy,” McDonnell said. | “It refers to a run of disappointing data and the unlikelihood of getting deficit reduction back on track, officially confirming the Tory failure on the economy,” McDonnell said. |
| “Now we’ve had it from the official civil servants it’s time the Tories came clean. They should drop the spin and admit the truth: they are failing on the public finances and working people are paying the price.” | “Now we’ve had it from the official civil servants it’s time the Tories came clean. They should drop the spin and admit the truth: they are failing on the public finances and working people are paying the price.” |
| The document’s figures showing the increase in EU budget contributions will prompt speculation that the increase was delayed until after the referendum result, though the Treasury insisted that was not the case. | The document’s figures showing the increase in EU budget contributions will prompt speculation that the increase was delayed until after the referendum result, though the Treasury insisted that was not the case. |
| In May, the Times reported that the European commission has delayed its budget proposals for 2017, prompting speculation that the bloc was concealing a planned increase in spending until after the June referendum. The commission insisted that was not the case, and delay had been necessary to do the necessary budget calculations to deal with the migration crisis. | In May, the Times reported that the European commission has delayed its budget proposals for 2017, prompting speculation that the bloc was concealing a planned increase in spending until after the June referendum. The commission insisted that was not the case, and delay had been necessary to do the necessary budget calculations to deal with the migration crisis. |
| On Monday, Treasury sources flatly denied EU budget increases in the leaked document were related to the referendum result. | On Monday, Treasury sources flatly denied EU budget increases in the leaked document were related to the referendum result. |
| “The EU asked for a smaller share of our total 2016 contributions in the first three months of the year than in previous years,” a spokesman said. “Our total contribution for the year is not affected, as the OBR set out in their March forecast.” | “The EU asked for a smaller share of our total 2016 contributions in the first three months of the year than in previous years,” a spokesman said. “Our total contribution for the year is not affected, as the OBR set out in their March forecast.” |