Jim Power

going to impact on employment, it's going to impact on consumer spending, and that is going to put downward pressure on taxes potentially.

And at the same time, it is really difficult for any government to curb spending.

And in fact, all of the pressure is on the other side.

So I think it is going to be a really, really interesting debate here over the next few months as the budget is being framed.

And what I would have said to a

If sensible realism actually dominates the budget on October 6th, well, then you'd be doing well to maintain the status quo in terms of various tax incentives and so on.

So have I lost you?

Oh, yeah, absolutely.

The circus is already starting.

But, you know, the bottom line is in the exchequer finances, OK, the revenue mainly comes from taxation.

And once you commit to spending, it is really difficult to roll back on that.

And we discovered that, for example, with the energy credits.

I think they were contained in about two budgets.

And then when the government financed

failed to deliver the last time.

There was murder, there was hell to pay.

So that's the problem with spending.

Once you commit, it's a ratcheting up effect.

It's really difficult to roll back, even if the tax revenues disappear.

So I think the public finances are in a very, very precarious place at the moment, potentially.