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!