Tuesday, 11 March 2008
The UK Budget is tomorrow and even the newspapers are getting themselves into a flap about what may or may not happen.
Canny readers of this blog have been voting on the post to the right all week on the likely outcome: all round tax rises.
The only piece missing is the details of who is to suffer. Having studied the incumbent of 11 Downing street for some months now, I think Badger himself is unlikely to know many answers as they hunt the floor for the backs of envelopes upon which Gordon has sent through his myriad and contradictory instructions.
Do in the Non-Dom's! Leave them alone!
Tax petrol and all things green! No stop it!
All very contradictory. However, the spin today is at a new level, suggesting pure doom and gloom, this comes straight from the spin playbook so that the relatively bad news tomorrow is welcomed as better-than-expected.
Whether this will work we can judge with Thursday's media response. For my interest I am intrigued to see the guesstimates for UK growth and government borrowing for the coming year as I expect these to be heroic!
These are key because if there any surprises this year there is little fiscal room to manoeuvre for the government and next year may well be an election year. A quiet budget is not a good budget from this perspective as it shows no new ideas or change going into what will be choppy waters on the macroeconomic front.
As for my predictions;
some wheeze on national rate of tax
petrol tax to rise
another attack on airlines/air travel
Non-doms to get some get out clauses, but still to be hit
minor reliefs for pensioners etc.
Posted by CityUnslicker