Finance expert says Budget will be a balancing act for Government

The video discusses the government's budget announcements, focusing on the balance between aiding families and managing public sector pay amidst high borrowing and inflation. It highlights the end of the public sector pay freeze, the potential impact on families due to tax changes, and the challenges posed by rising inflation. The economic outlook is cautiously optimistic, with lower borrowing than expected, but ongoing pandemic costs and inflation remain concerns.

What was the reason for the temporary public sector pay freeze during the pandemic?

• To align with private sector wage reductions

• To reduce government spending

• To boost economic growth

• To increase public sector competitiveness

What is a potential consequence of ending the public sector pay freeze?

• Increased government borrowing

• Lower inflation rates

• Higher taxes for citizens

• Decreased public sector employment

Why might it be difficult for families to determine if they are better off after the budget announcements?

• Lack of clear government communication

• Inaccurate inflation predictions

• Unpredictable energy prices

• Complexity of tax changes and cost increases

What is the expected inflation rate by the end of the year, according to the Bank of England?

• 5%

• 2%

• 4%

• 3%

What ongoing financial obligations does the government still face post-pandemic?

• Increasing private sector employment

• Paying for the vaccine booster program

• Reducing public sector wages

• Lowering interest rates