The 2004 budget : sixth report of session 2003-04, Vol. 1: Report, together with formal minutes

The Committee's report examines the main points of the 2004 Budget report (HC 301, session 2003-04; ISBN 0102927626), as well as considering the general state of the economy and other public sector finance issues.

Findings include that, despite the growth in the economy and record employment levels, tax receipts in 2003-04 are below the Treasury's forecasts.

The Committee states its hope that the overestimation over the last three years of both absolute tax receipts and taxes as a proportion of GDP will cease, and makes a number of proposals to ensure a greater transparency in the Treasury's tax forecasts.

The Government's public expenditure plans partly depend on the success of its efficiency savings programme, and challenging savings targets have been set which leave little room to manoevre.

Clear indications will be required in the Spending Review of how these savings are to be made and how their achievement is to be measured.

The Committee's welcomes the policies to close tax loopholes, although concerns are raised regarding the likely effects of the introduction of the zero rate of corporation tax.