Spending increases were also announced. There are still reasons to be concerned, particularly about the future trend on public spending, the growing complexity of the tax system and the sustainability of public finances in the event of weaker economic growth. The buoyant economy, falling unemployment and lower debt interest has allowed the chancellor the scope to achieve the best of all worlds, banking some money, cutting taxes and spending more. These numbers are credible, and the outturn could prove even better over the next year. There is a huge margin of error on Budget forecasts.
Strong growth guarantees good finances, as the buoyancy of income tax receipts shows.
The chancellor's economic forecasts are sound. Low inflation and low interest rates are global phenomena. This is a concern, as it reflects the personal sector running down its savings. This is a dangerous trend and, in that respect, some of the measures that were announced to boost savings are welcome. Having stressed stability, there is now a phenomenal number of micro-measures, as seen by 93 mentions of children or families in the speech.