Government Budget Statement
Summer 2010 – number 01 (of a new series)
“Responsibility, freedom, fairness: a five year plan to re-build the economy” – says Mr. O
…..…the last shower screwed up biiiig time, and I’m going to fix it ASAP - everyone’s going to hate the solution – but at least I can smile nicely while snipping bits off your bank balance
We set out below comments on the Emergency Budget presented by our shiny new Chancellor in June 2010. The Budget was a refreshing change of style from the last xx years of waffle, but whether it will work is of course up in the air.
The good news is for businesses making massive profits as their tax rate will drop by 1% pa. for at least 4 years.
The bad news is for alcohol-drinking, smoking, disabled, housing benefits claimants with several teenage children as they are being clobbered big time from next April+.
We remind you of a quote from ONS ( UK Office for National Statistics ) “The public sector recorded deficits between 1991/92 and 1997/98 before moving into surplus in 1998/99. Deficits have been recorded since 2002/03.”
So what went wrong from 02/03+? Why did Gordon B recklessly start running deficits in 2003 onwards??, and no one said “this is madness Gordon, get a grip”.
And the thing we don’t get a clear explanation on is :- what is it that is actually driving this massive PSBR surge for several tax years? Think it through – the dozy banks screwed up biiiig time so we nationalized them / bought shares in them / lent massive amounts of dough to them all amounting to £billions. Yep all fine, but that’s a one-off, what’s pushing the borrowing in 2010/11 onwards? It seems some of the answer lies in the massive increase in the Benefits payments in the last few years together with big increases in Education and the NHS without regard for how the money was going to be found.
The only real hope is that the ‘astute investments’ in the bombed-out British banks come good, and we can flog the shares for massive profits in about 4 years time to pay it all off. Otherwise plan B is that we will have a PSDR liability of £10bn. per year for the lifetime of our grandchildren.