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Poll reveals cutbacks to public spending as preferred option

12 Mar 2010

With the UK Budget edging closer, ACCA recently conducted a poll to UK members that posed the following question:

Given the current state of UK public finances, which of the following do you think is a better proposal from the government to deal with the UK budget deficit?

• Cuts in public spending
• An increase in national insurance contributions (NICs)
• Both

The poll results saw 56% of respondents favour proposed cuts in public spending to deal with the UK budget deficit, with only 5% agreeing on an increase in NICs.

In addition, just over one-fifth of respondents considered a combination of the proposed two measures - cuts in public spending and an increase in national insurance contributions - a viable option for the government to pursue, while 18% considered neither strong enough to deal with the budget deficit.

'As we approach a general election and a spring Budget, this is an interesting snapshot from a cross section of the profession about how the UK's deficit could be handled,' said Chas Roy-Chowdhury, ACCA head of taxation.

'National insurance contributions will rise in April 2011 anyway, and it does not seem too far-fetched for a government to raise both NICs and cut public spending. Tackling this economic deficit will be a difficult policy decision to make for whichever government is voted into power.

'There is little doubt that 2010 will be about making tough and possibly unpopular policy decisions. But ACCA members have clearly indicated that tax increases would be the soft option and they favour spending cuts.'