United Kingdom


  • Industry: Government & Public Sector
  • Type: Press release
  • Date: 26/06/2013

Spending Review 2013: “No big deal in macro terms”, says KPMG Chief Economist 


Commenting on the Spending Review announced by the Chancellor of the Exchequer today, Andrew Smith, Chief Economist at KPMG in the UK, said:


“Filling-in the details of the already-announced spending envelope for 2015/16 was never going to be a big deal in macro-economic terms. In the overall scheme of things the £11.5bn of spending cuts, out of the £750bn-odd spending total, is two years ahead and within any normal forecasting error – but it does highlight how tight the public finances are and will remain through the rest of this Parliament and into the next, when further swingeing spending cuts are pencilled in.


“And of course even these projections are premised on the economic recovery strengthening from here.  While 2013 has got off to a reasonably encouraging start at home, the recovery can hardly be called robust. With fiscal policy ruled out, the onus on keeping it going in an increasingly choppy international and financial market background falls to monetary policy. Welcome, Mr Carney.”





Follow us on twitter: @kpmguk #SR2013




For further information please contact:


Margot Cowhig, KPMG Corporate Communications

Mobile: 07920 274856



KPMG Press office

Tel:  +44 (0) 207 694 8773


About KPMG:


KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff.  The UK firm recorded a turnover of £1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  KPMG International provides no client services.


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