Wednesday 24 March 2010

Instant Budget reactions - LIVE

Lower stamp duty - why the support for the housing market. help to first time buyers would be better if house prices fell.

Growth predictions - 3% next year is very optimistic, most economists reckon about 2.2%. This difference is huge in terms of its effects on our total debt.

Debt - Good news debt is only at £167 billion, but still the worst ever by a country mile.

Cider attack- No votes for Labour in South West UK then. hit the drinkers overall, as per usual.

Huge tax rises announced overall, £19 billion pounds worth.

INCREASE IN PUBLIC SPENDING NEXT YEAR OF 2.2%!!! Labour will never cut, if they win the election its IMF time for sure now. Fantasy of pretending that after next year there will be huge spending cuts which are not being announced or even mentioned yet.

blah blah...Limit of 1% for senior civil servants after 2011, London civil servants to be reduced, 15,000 posts over 5 years. Tiny other cuts suggested. Benefits payments not to go to people living in mansions at state expense. They reckon £20 billion of cuts; the deficit is £167 billion.

The cuts, which are only optimistic, ar enot as much as the tax rises - this is Labour - robbing you for their client state votes.

Also looking to sell Tote - 2 years and counting!

So what will cut the deficit - Darling says growth - the last refuge of a soundrel chancellor.

So now huge intervention into private sector suggested to get this - ordering banks to lend, which can only mean reducing their credit criteria and so undermining their recovery. Good to see Labour interfering with its cowed banks. £94 billion of new lending from RBS and Lloyds - can't see that helping their share prices.

Apparently some small new funding for small businesses too, but still the core tax on small business goes up this year. But business rates to be reduced for one year,  and some reduce on rates for business investment. overall, these are good ideas and surprisingl progressive from a Labour chancellor. I wonder if the overall tax burden has gone up or down though with all these fiddly measures? My hunch is down, but could be wrong.

Energy strategy - still a mess, now a green investment bank to help the private sector. NO More offshore wind wibble - such a poor return on investment, if any - loss-making investments by the Government - terrible.

Digital Economy - support for Computer games industry, reduced taxes on patents. Oh dear, more state innovation funds, albeit tiny at £35 million.

Universities - 400,000 more UK citiznes is that, don't think so. Lots of uni places are for Europeans. Oooh, a modernisation fund for Universities, how mcuh of that will go back to Labour Party as a donation?

tax crack down - focus purely Ashcroft - nice and political then!

and its over.

TRADING - Closed punch at 79.5 - not much profi there after costs, no real impact of the budget. Leaving GBPT short ETF in place, pound off a bit on the fantasy forecast, 3% up so far. A hundred quid odd is ok for a quick in and nout.


Bill Quango MP said...

Very odd to say INCREASE!
And £20 billion of efficency cuts INCLUDES pay cuts?
That ain't gonna happen. There are strikes now already.

Call up Tattoo.. Its Fantasy island

Elby the Beserk said...

Yes - hit Cider, hit the South West; but then, Labour loath the countryside and all who dwell there. And we loath them for that.

Bill Quango MP said...

The business rates are set to RISE by up to 100% THIS year already CU.
I will look into it but it looks like a way of staving of a business version of the 10p tax rate that has been brewing.

Nick Drew said...

more university places !! hollow laughs all round

lilith said...

He is going to increase the needs of the government so that small businesses can be formed to supply demand.

Cider? I am off to fill the cellar.

Bill Quango MP said...

Peston having a good look at the Banks borrowing pledge. He reckons that the Chancellor has actually reduced bank borrowing guarantees while claiming to have increased them.

Up is down
War is peace
Are we still at war with Eurasia?
Where we ever at war with Eurasia?

Marchamont Needham said...

£167bn was a surprise - bet it turns out to be creative accounting.

James Higham said...

Will small business be stimulated?