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Historical costs differ from current values The report also supports the government's plan to cut its annual budget deficit this year. The rise of new tokens and funds Philip Hammond has been trying to persuade conservatives that tax increases and spending cuts are needed to reduce the deficit. Canning's 1929 book, economics in accounting, cites the economist's view that asset values are determined by the present value of the future cash flows of assets. The government also told the bank of England that it could increase its $25bn in regular funding schemes, which means that this is unlikely to change.