Bourne says that over the past decade the Budget has moved far beyond its original purpose, which was announcing spending totals, tax rates and allowances in order to finance that spending. Now it's morphed into a wide economic statement which announces various measures that shouldn’t fall under the Treasury’s remit.

“This orgy of announcement across a broad range of areas creates considerable uncertainty for businesses and households,” he says. "It tends to lead to truly dreadful tax policy-making. It looks for political gain as opposed to taking into consideration the economic impact." 

“The political nature of the day leads to politicians and the chancellor trying to obfuscate the nasties contained in the Budget. It also creates an unhealthy pressure for the idea that a good budget is one which creates more winners than losers.

“At a time when we are borrowing over £110 billion per year, this is not a particularly healthy dynamic.”

Bourne thinks that the Budget should be shifted back to a situation where it outlines the spending, tax rates, tax allowances and borrowing needed to finance that spending. It would be beneficial, he says, because areas that currently fall under the Budget remit - like infrastructure planning and pension reforms - could be brought forward to the House of Commons in the ordinary way through their departments, with much better scrutiny of the legislation.

Despite the improved economic outlook, the UK’s broad and economic challenges remain the same, he says, with Britain borrowing £51 billion higher than was forecast in 2010, and the growing national debt is expected to reach £1.6 trillion.

“We really hope this Budget sticks to the policy of getting the deficit and long-term debts under control. We'd like to see them be more transparent in the way they tax us by not allowing increases in incomes to lead to much higher tax burdens on people. I think that the government can do more in terms of deregulation and tax simplification in order to really improve the growth potential of the economy,” Bourne told VoR.

The next Budget is due to be announced by Chancellor George Osborne on March 19, 2014.

(VoR)