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!
First the Germans and now the French. There seems to be a queue of politician’s abroad wanting to attack Gordon Brown’s economic policies. No doubt we’ll see Downing Street twist this story to try and explain that this wasn’t aimed at Brown and he is still regarded everywhere as the saviour of the world economy!
Fraser Nelson at the Spectator has produced this excellent analysis of the effects of all the economic measures announced by Gordon Brown in recent months. It’s essential reading and another indicator to show the ineffectiveness of Brown’s economic stimulus and proves that Brown has no idea what he is doing except announcing measures for the the sake of a few days publicity and in the hope of an increase in the polls.
Hat tip: Coffee House
The Institute for Fiscal Studies (IFS) has today painted a very gloomy picture on the state of UK finances in the years to come with a prediction that it will take 20 years for UK debt to return to pre crisis levels and that £20 billion worth of tax rises or spending cuts will be necessary to achieve the improvement in the public finances set out in the PBR.
This forecast is in effect confirmation of this campaign video released by the Conservatives two weeks ago in that future generations will be straddled with debt left behind behind by Gordon Brown and his incompetent Government. Despite the plethora of gloomy economic news including job losses and record numbers of house repossessions, Gordon Brown refuses to acknowledge that he hasn’t ended economic boom and bust, a point put to him at today’s PMQ’s by David Cameron.
According to the Office for National Statistics:
‘The number of unemployed people increased by 131,000 over the quarter and by 290,000 over the year, to reach 1.92 million (the highest figure since the three months to September 1997).
More worryingly ‘there were 530,000 job vacancies in the three months to December 2008, down 69,000 over the previous quarter and down 153,000 over the year. This is the lowest figure since comparable records began in 2001.’
We now have uncontrolled debt, rapidly rising unemployment, sterling losing value on a daily basis, property prices down by 20% and Government introducing policies such as VAT cuts and bank bailouts that simply aren’t working. Gordon Brown has made a complete mess of the economy and his claim that the UK economy is well placed to weather the ‘global downturn’ is palpable nonsense.