Wednesday, 9 December 2009

What should be in the PBR Speech

- An apology for the absolute lies told last year and in the budget that the economy would recover in the 2nd half of 2009. Instead some more accurate predictions for next year, allowing for a shallow double dip and growth of about 1% at best for GDP.

- An admittance that Government spending is going to overshoot to just shy of £200 billion this year. An analysis showing that 50% of this is now a structural deficit, meaning spending cuts are needed to reduce the deficit.

- Some much needed tax reductions for business and the low-paid. 5% of business taxes and thresholds raised to £8,000 for all people. Paid for with VAT hike to 7.5%, re-imposition of stamp duty on all house sales and raising capital gains tax to 25%.

- A plan to sell-off stakes in RBS and Lloyds within 3 years, as well as the sell-off of the channel tunnel and other large infrastructure assets.

- The beginning of a shift to taxes on energy consumption and away from income taxes, to be revenue neutral in aim.

- A promise of an immediate 6 month review of all Government spending with the outcome to be a 15-20% cut in the amount of spend by Government within 2 years. No sacred cows in defence, NHS or foreign aid.

- A commitment to end Quantitative Easing to ensure that the UK can maintain the low interest rate environment for as long as possible to see us through the next phase of the recession.
I'll be amazed if a single point is raised - yet it is all common sense...


Budgie said...

The problem is that Brown is completely out of his depth. He believed his own rhetoric that he had eliminated 'boom and bust' so the massive UK debts have taken him by surprise. He is also incapable of adjusting to new circumstances quickly enough. It was obvious 18 months ago that we needed to reduce all government (but in particular, structural) debt and yet he is still resisting. His dereliction of duty and his amazing incompetence means he remains a millstone around our necks.

roym said...

pah! i already have a new boiler. and i missed out on the scrappage scheme too.

Bill Quango MP said...

I bought a new boiler last December.

Cu , you were way off.