The Government is considering introducing a so-called “spring statement” next year to break up the budget process and spread its economic announcements over the year.
Coalition sources say the timing of the budget next October will not allow enough time for future tax cuts or welfare increases to sink in before the general election, due in spring 2016.
While recognising 2014 has been a tough year politically, those at the top of Government maintain the economy is improving at a quicker pace than had been expected even in the summer.
New vision
Following the controversy over the introduction of water charges, figures in both
Fine Gael
and
Labour
say they must communicate more effectively and pitch a new vision for the country to voters next year.
The spring statement, which is being informally discussed, would be part of a wider process to “tell the people where we think the country is going”.
UK chancellor of the exchequer George Osborne last week unveiled his autumn statement on economic growth, which included policy announcements such as a cut in stamp duty. The autumn statement is separate to the UK budget, which is announced in March.
Senior Coalition sources say Fine Gael and Labour may follow a similar template in their last year in office before the election.
Economic policy
“One of the things we’d like to do is rather than wait entirely for the budget for everything next year, make some kind of statement in the early part of the year on broad policy areas, economic policy areas,” a source said. “You could potentially announce a couple of things through the year that you don’t need to wait until the budget to announce.
“There is a concern if we leave it all until October next year it’ll be too late. The mood music needs to be the economy, the economy. And here’s a spring statement that shows the economy is getting better . . . that shows what more we are going to do and then in the autumn we’ll actually do it.”
The most likely time for this is April, at the same time the Government submits its stability programme update to the European Commission.
