Wednesday 22 April 2009

Budget 2009 Reaction: Spin and more Spin

There are many, many reasons to be disappointed with the current Government. That they manage to cram all of them into a single budget is phenomenal.

50% top tax rate for £150k plus earners - really, this raises a pittance. Pure politics to play with the Tories.

'Investment' - in sundry green initiatives, an industrial policy, non-jobs for those who can't get real ones. All very costly, all will have no impact.

£15 billion in public spending cuts - out of over £600 billion. That is like not buying chocolates with your families weekly shopping money; ooh, what a saving!

But worst is the really big lies, the whoppers that are going to mean MASSIVE spending cuts from next year and huge tax rises:

• Economy forecast to shrink 3.5% in 2009 - Um, at least 1/2% out on the downside

• Growth expected to pick up in 2010, expanding by 1.25%. - heroic, be surprised if we manage more than 1/2% in total

• Economy to grow by 3.5% annually from 2011 - Long term trend in 2.5%, so again, pathetic assumptions.

• Public borrowing to increase to £175bn this year - Gulp

• Borrowing levels to rise by £173bn, £140bn, £118bn and £97bn in years after - 4x gulps, plus all wrong as the growth predictions are way off, so these numbers will all expand hugely.

• Consumer price inflation to fall to 1% by end of year. - So QE won't work then, Alistair?

All the hard decisions have been ducked and left to the next Government which Darling knows won't be him. It is the most political budget ever, Labour have betrayed their own country.

I am flying out of the country on business tomorrow - is it worth coming back?


dearieme said...

"is it worth coming back?" - I think that that question should be directed to your wife.

Bill Quango MP said...

Another problem is that we all know that inside the budget are a load of details that will emerge that will damage further the dented credibility of this budget.

They have achieved one aim already. All the media is talking about taxing the rich, not the incredible damage to the economy that has already come to pass.

CityUnslicker said...

Dearime - maybe I can send for her and the kids!

roym said...

i agree, political tokenism that will generate all the usual headlines.

alcohol duty up again with immediate effect. we'll all be drinking for england quite literally soon enough

Wrinkled Weasel said...

If I could, I would leave.

Disingenuous and Desultory budget, with more borrowing and more public spending. A continuation of Scorched Earth.

Demetrius said...

One would like to say that the Budget is a dogs breakfast, but no self respecting pooch would go near it. Like me and my mates shouted at our local team when they were relegated "You're all a load of rubbish". This puts it at the right sort of level.

Goodnight Vienna said...

I don't think anyone's surprised really; we've been talking about 'scorched earth' for months now. It would, sadly, have been more surprising if they had actually acted strongly and positively. btw have linked to you here, hope that's ok.

Simon Fawthrop said...

"50% top tax rate for £150k plus earners - really, this raises a pittance. Pure politics to play with the Tories. "

Agreed, but it will give us the opportunity to test the Laffer curve at the high end of taxation. With a bit of luck the incoming Chancellor will be able to point to it and say "taxes fell, so we can now start a programme of reducing incoming tax."

Well I can dream, can't I?

Unknown said...

I think I have only myself to blame for the high hopes... another example of Labour fiddling while Rome burns. Nothing in that budget will actually affect the situation we're in.

Anonymous said...

Is it worth coming back?

It depends on where you're going.

Either way, hope the business is profitable.

CityUnslicker said...

GV - Thanks for the link.

TGS - The next government will have to raise taxes more, hopefully in a less spiteful way on the entrepreneurial clss.

Bill Quango MP said...

I'm unclear. Has the electric car thing been dumped in favour of scrappage?
He never mentioned it.
Or is he doing both?

Electro-Kevin said...

Alice Cook uses a more apt expression than scorched earth. Poisoned well.

Z A Chaudhry said...

Admittedly, I'm not much acquainted with the new UK budget, or even the UK economy, but about the part:
'£15 billion in public spending cuts - out of over £600 billion. That is like not buying chocolates with your families weekly shopping money; ooh, what a saving!'
Don't you think that $15 billion, if spent, would result in a huge difference considering the multiplier effect?

Judy said...

As I predicted, problems kicked into the high grass by darling.

I wish the MSM would actually be the MSM, as for the state-owned BBC!
,they are useless.

CityUnslicker said...

Zain - No, we have to make debt repayments on all the borrowing. We need to control the borrowing and spending far more effectively than we have done.

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