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Insights from the UK and beyond
Budget for votes riskily delays UK debt pain
– The author is a Reuters Breakingviews columnist. The opinions expressed are his own –
Alistair Darling promised no election “giveaways” and in one sense he delivered. The UK finance minister’s budget is about not giving away the election. It might have been worse — if Darling had acceded to his boss Gordon Brown’s even more populist instincts. But there are vote-seeking swipes at high earners and banks, as well as a crowd-pleasing but misguided tax cut to first-time house-buyers. The UK’s budget-balancing pain is being postponed and concealed. And that’s risky.
The headline measure is a tax cut. First time buyers of properties costing up to 250,000 pounds won’t have to pay anything to the government. Many voters will like that. They will like it, too, that people buying million pound properties foot the bill. A further bout of bank-bashing was part of the electioneering approach. Given the scandal of City rewards, few will blame Darling.
The economic impact, however, will be limited. The wobbly housing market may be helped slightly. But the UK economy needs to be buoyed by production and exports, not house price inflation.
Defence industry needs PR rethink
Britain’s defence industry held its annual public relations exercise on Tuesday at London’s swanky Atrium Restaurant in Westminster.
The “charm” offensive –- held under the auspices of trade body the Defence Industries Council (DIC) –- began with executives from BAE Systems, Rolls-Royce and QinetiQ, among others, telling assorted media that the defence industry needs more investment (not less) even during a recession.
from The Great Debate UK:
Government must deliver on Olympic legacy promise
- Hugh Robertson is the opposition Conservatives' Olympics spokesman. The views expressed are his own. -
With three years to go, it is remarkable that London 2012 is going so well.
London’s Olympics were launched with a massive government miscalculation that resulted in the budget having to be increased threefold, were based on a plan that required us to build two Terminal 5s in half the time and have had to contend with the worst economic recession in living memory.
from The Great Debate UK:
Budget boost for savers
--Fay Goddard is chief executive of the Personal Finance Society. The opinions expressed are her own.--
As predicted, Budget 2009 was heavy on figures and forecasts and hard on the highest earners. Unsurprisingly it is the latter that the press has picked up on. We all knew that there would be a new top rate of income tax – though some were taken by surprise at the rate of 50 percent and the speed at which it will be introduced.
Punters cash in on Darling’s budget tie choice
Smokers and top earners were clear losers in Britain’s budget this year, as the government hiked taxes on cigarettes and the highest incomes.
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But a lucky few must have been cheering in front of their televisions during the 51-minute speech.
What did you think of the Budget?
Chancellor Alistair Darling has made his second annual Budget speech to parliament. Among the measures announced to the House were an increase in petrol duty of 2p per litre in September and a 2 percent increase in alcohol and tobacco duties from tonight.
Darling also announced a scrappage scheme offering £2,000 to people trading in cars older than 10 years for a newer vehicle. From next April there will be a new top tax rate of 50 percent for those earning more than 150,000 pounds a year.
from The Great Debate UK:
Apocalypse Now: A return to high borrowing, high taxes and weak growth
--Gerard Lyons is chief economist at Standard Chartered. Any opinions expressed are his own. --
Britain is clearly a Jekyll and Hyde economy. Or that at least is what the Chancellor would like us to believe. The bad news we are now seeing in the economy, public finances and across parts of the financial sector will not last. We are in the Mr Hyde phase. But, don't worry, we will soon be back to the normal Dr Jekyll soon.
In for a penny, in for £175 billion
It may not be tax and spend exactly, but it’s definitely tax and borrow.
For the best part of 12 years, Labour has pursued essentially conservative (with a small ‘c’) economic policies, steadily underburdening itself of the ‘fiscally unreliable’ tag that some earlier Labour administrations were (wrongly or rightly)Â saddled with.
And for most of the past 12 years, as the global economy steadily expanded and Britain’s along with it, with aggregate wealth rising smoothly, Labour looked strong at the helm each time the budget came around.
from The Great Debate UK:
The devil will be in the Budget detail
-- Fay Goddard is chief executive of The Personal Finance Society. Any opinions expressed are her own. --
Though it’s a cliche to say that a budget is eagerly awaited you can be forgiven for saying so this time around. This year all eyes and ears will be focused on the Chancellor’s economic figures and forecasts. The big question is how will he balance the books – cut public spending or raise taxes? In the run up to an election cuts are ideal but needs must. What will it mean for personal finances?
Another bumper Budget?
All we’ve heard for the past few weeks is how little room there is for Labour to pump more money into the economy to fight the recession.
The increasingly popular — and confident — opposition Conservatives have gained ground by blaming Prime Minister Gordon Brown for turning the public purse into a public hearse.
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The Wall
