Ed Balls has said he is in favour of a temporary cut in income tax in a recent Telegraph interview.
So am I, although a VAT cut helps the poorest most.
And I am even more in favour of direct government spending on infrastructure as that has the biggest bang per buck in boosting the economy.
In fact both tax cuts and spending are vital now. In combination the boost they will give the economy to get people back to work, off benefits and into paying tax will more than repay any short term increase in borrowing. This is the only rational policy for next week's budget.
But I suspect there will only be one tax cut in the budget. Expect a further cut in the large company corporation tax rate to be announced - reducing it to 20%.
This is the one cut this country does not need. It will cost more than £1 billion and the benefit will go only to big business. But we already know from widespread reports from the Big 4 accountants, Ernst & Young, more than £700 billion is held in cash by the largest UK based companies right now. A tax cut giving them £1 billion will in that case make no difference to the economy at all: they have all the cash they already need to invest and aren't doing so. However I expect dogma to over-rule common sense and for them to be given another cash give-away at cost to the rest of society and with the sole policy purpose of increasing the wealth divide in our society. But that, after all, is what Osborne is all about.
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There is finally a real example of the poor bailing out the rich (Cyprus) and TRUK refuses to comment?
Time my dear chap, time
And priorities
Actually, I have no problem with high value accounts being written down at all
I have many problems with small depositors being hit
What if the high value accounts = lifetime savings of some??
(Not talking about the supposed Russians here, although they deserve the same treatment as everyone else under the law)
If the loss saves their bank from failing that’s a good deal
I guess the bankers would agree….
Are you not concerned that increasing gov’t debt further will cause gov’t borrowing costs to rise as they have across Europe? Is the UK economy different in a significant way that allows us to have higher gov’t debt?
We have our own currency
Our borrowing rates to GDP are much lower
Sterling is still a safe haven
“It’s not looking good for many areas of the UK as we see a sustained period of heavy blame drifting in from the south-east before moving away and settling on the poor”
http://newsthump.com/2013/03/15/economic-forecast-latest/
I just hope I’m wrong over this then http://www.3caonline.com/will-this-be-how-george-osborne-helps-small-businesses-in-tomorrows-budget/
I suspect you’re 100% right
Hope you’re well too