The independent Office for Budget Responsibility (OBR) published an Economic and fiscal outlook forecast for the economy and the public finances yesterday. There was no Pre-Budget Report but the Chancellor followed with an Autumn Statement announcing a Corporation Tax reform package.

The OBR’s report also contained an assessment of whether the Government is likely to achieve its fiscal targets and offers a preliminary view on the long-term sustainability of the public finances. Recovery has started although it is slow compared with recoveries seen after previous recessions. It is unlikely to speed up short-term because of the VAT increase on 4 January 2011.

The Chancellor says that “Britain is open for business” and the government is prioritising Corporate Tax reform. A road map sets out reforms to the UK’s Controlled Foreign Company rules and a commitment to introduce a Patent Box. Changes to CT rates were announced following the general election.

The CT road map

Year 1

Year 2

Year 3

Year 4

Year 5