Debt, Debt and More Debt…And Increased Taxes

April 22, 2009

The Budget has been delivered and all the allegations against this Government of being profligate in its spending have been borne out with borrowing estimated to be £660 billion over the next four years  – which is simply ridiculous. This figure is calculated on the basis that growth will be 3.5% in 2011 which at the moment seems wildly optimistic.

Reverting to its natural instincts the Government is proposing to increase the top rate of tax to 50% for those earning over £150 000. This is symbolic more than an attempt to get spending under control and is designed to appease the left wingers in the Labour Party and pressure the Conservatives.

One thing which never changes is the outcome after a sustained period of a Labour Government. All Labour Governments spend as though there is no tomorrow and tax until the pips squeak and leave the country’s economy is an absolute and utter mess. Gordon Brown’s is no different!


Budget Day

April 22, 2009

Unemployment is up 177,000 to 2.1 million and borrowing in the last financial year has gone up to £90 billion with borrowing this year projected to be a colossal £180 billion. Will the Chancellor introduce measures designed to win next year’s general election or will he do the ‘right’ thing and look to reduce the soaring debt and try and control public expenditure? All should be revealed later today when he delivers his budget.