Topic: Fiscal Policy – Please see attachment

Topic: Fiscal Policy – Please see attachment

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Following the financial crisis of 2007/08, the UK budget deficit and national debt both ballooned in size. In response to this, the Coalition Government set up the Office for Budgetary Responsibility (OBR). The OBR is responsible for producing independent five-yearly budget and national debt forecasts and assessing whether the Government is likely to attain its fiscal mandate of a balanced structural current budget within this period. The OBR is also responsible for scrutinising the fiscal impact of tax-and-spend policy measures announced in the Budget or Autumn Statement and analysing the long-term sustainability of the public finances.

In relation to the above, write a two-part essay that:

evaluates the fiscal policy options available to a UK government seeking to eliminate the structural budget deficit over the next five years; and
considers the likely challenges and changes that a UK government may need to make to develop a sustainable fiscal policy.

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