At last! Now we’ve got a Conservative government in charge some posts will be about reducing government spending. Just watched the UK emergencybeing announced on the BBC from chancellor George Osbourne. Most surprising was that VAT won’t be raised till next year. I think maybe it should have gone up 1% as this national deficit has got to be lowered s fast as possible. At least he didn’t raise tax on alcohol, petrol / diesel or cigarettes, usually seen as cash cows to previous governments.
Provisions to ‘police’ the UK banking system & source extra tax revenue from them were good news, as was a policy to means test benefit claimants. This is all part of a budget to decrease the deficit through cuts in government (over) spending rather than just hit us with more tax. He stated that the state is responsible for over half the UK’s national income & that this is not sustainable. Well I had previously likened the Labour government to people running a Labour Ponzi scheme but I didn’t think it was as bad as that.
Good news: Public sector pay freeze for 2 years. Total welfare savings of £11 billion. Bank levy from Jan 2011 to raise £2 billion a year. VAT not rising to 20% till Jan 2011. Capital gains tax only rising to 28% for top earners only and will remain at 18% for low – middle income earners like me & most of you.
So it was tough but fair as far as I’m concerned, being a low earner. Info sourced from hereif you want to read all the technical stuff such as predicted inflation & deficit reduction.
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