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The Budget

Have been away in London for the last 24 hours and actually missed the budget live for the first time in a decade.

As I am doing a live panel tomorrow for businesses in Cardiff, I will probably blog in more detail later once I have read the full report.

However, my instant reaction is that of many others.

Shock and horror at the £175 billion of public sector borrowing this year.

Incredulity that the 50 per cent increase in the higher rate of tax is perceived as a vote winner (well, until the Conservative Party said that they would not commit to reversing the policy)

Enormous disappointment that nothing real was done to boost the business sector, such as a freeze in business rates or a cut in corporation tax.

Clearly, there is political capital to be made out of this budget but that can wait for another day. What is really worrying though is the news that the pound fell against both the dollar and the euro, which shows that investors are keeping out of the UK.

More frightening is the prospect that if investor confidence drains even further, then the Government will not be able to raise money to service its debts and then must go cap in hand to the IMF.

Comments

Anonymous said…
To paraphrase Aneurin Glyndwr, I wonder how the "Labour-led Welsh Assembly Government" will deal with over £400 million of cuts from the Labour led UK Government?

Pathetic
April 22, 2009 9:02 pm
The Don said…
At least your mates the Vice Chancellors will be paying more on their exorbitant salaries. They may even have to go down to Aldi for their Chardonnaay.
April 23, 2009 6:52 am
Anonymous said…
The 50% will hit the financial sector boyos ,good.So hands being wrung, they will leave etc etc, oooh brain drain.
Well there is nowhere to go,taxes are higher in most of Europe,jobs in that sector are also being shed.There are people with financial skills looking to come over to the UK.so that's something to think about.
I am more concerned for the other end of the spectrum, those with so little that tax will not be an issue,what about them.
And more tax on fuel -man's a dork.
I have to say though ,the conservative response was pathetic.
April 23, 2009 10:13 am
Anonymous said…
Surely it's time for a vote of no confidence? This government is not profligate but the epitomy of idiocy. Cameron's speech indicated the seriousness of the matter but what's stopping them from calling for one? With a lack of democracy in parliament - evidenced by a government that can carry on with an open chequebook for sums greater than the GDP - surely it's time the public were allowed to express their opinion?
April 23, 2009 2:39 pm
Professor Dylan Jones-Evans said…
I think this will happen when the credit rating for the UK is downgraded, as I expect it will be during the next six months and the Government prepares the ground for going to the IMF.
April 23, 2009 4:27 pm
crimeficreader said…
Thanks for the reply and it's good to know there's some possibility of this happening.

One of my most frequent typos is to miss out words. I left out "just" before "profligate" above.
April 24, 2009 4:58 pm
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