We’ve got an even bigger deficit than ever. There’s a number of reasons, but despite the economy doing better and despite net migration increasing, tax revenues haven’t increased as expected.
Why?
Well, projections (I think) are and have been a little too optimistic. Also,if you ask me, the near quarter-of-a-million immigrants have simply taken the jobs that a lot of existing UK residents didn’t really want or wouldn’t stay in. Cleaning roles, manual work, fruit picking, maids, waiters, bar staff. These aren’t always jobs that everyone on benefits really want. I appreciate that many on the dole would absolutely LOVE to work, but there’s a lot of workers from other European countries who are eager to work extremely hard in any role available.
So although the economy is doing well, taxes aren’t going up as much as we thought, and yet more huge cuts need to be made as the country borrows yet more cash to make up for the gaping hole in the finances.