A business as usual Statement puts Osborne at the mercy of calamities December 5, 2012 IN MAJOR fiscal consolidations, what gets done in the first two years is what gets done – unless or until there is another crisis. More than two years into the coalition’s deficit reduction programme, George Osborne now finds himself unable to change his strategy through additional tax rises or spending cuts. He spent those first [...]
The chancellor has a plan for growth – despite disappointment for banks December 5, 2012 HE HAS been criticised for taking too long to find the button marked “growth”, but yesterday George Osborne finally pushed it. Hard. With other business groups, the banks had been writing “Dear chancellor” letters, demanding measures to help small and medium-sized enterprises (SMEs), and this year’s Autumn Statement was his answer. This isn’t pure altruism [...]
Osborne revealed small measures to rebuild confidence December 5, 2012 THE background to George Osborne’s Autumn Statement was not encouraging. Growth has been very weak this year, and it comes in the aftermath of 2011’s inflation squeeze on consumers and reflects the ongoing euro crisis. The Office for Budget Responsibility has marked down its growth forecasts significantly. Taking this year together with the next three, [...]
Is the government right to delay its target of eliminating the structural deficit to 2017/18? December 5, 2012 YES Angus Campbell The chancellor has no option other than to push out the deadline to hit his fiscal deficit targets, as there simply isn’t enough growth in the economy. In the past few weeks, growth forecasts have been slashed. If he had stuck to his original dates, it would have meant austerity on a [...]
Rapid responses December 5, 2012 Debt calculations [Re: A case of lies, damn lies and our rocketing national debt, yesterday] It’s unsurprising that so few know the difference between the deficit and debt. The really shocking story is the way the government calculates its liabilities. The very first lesson in any accounting course is reflecting reality, and using accounts to give [...]
The chancellor must stop tinkering and face up to his UK deficit failure December 4, 2012 TODAY is not going to be George Osborne’s finest day as chancellor – whatever he does and whatever he says. He is veering wildly off course in his plans to eliminate the deficit and to start to get our soaring national debt under some semblance of control. As always, the first step to addressing a [...]
A lesson for Britain: America is saving the world by making energy cheaper December 4, 2012 CRIMINALS are reportedly refusing to leave Portugal’s prisons. According to the International Herald Tribune, prisoners are rejecting parole and requesting to serve the full length of their sentences. Despite record over-crowding, some motoring offenders have failed to pay fines, and have opted instead to serve three or even six month sentences. This is a remarkable [...]
The Treasury will gain nothing from property tax hikes December 4, 2012 A S THEY consider a “back-door” mansion tax and another increase in stamp duty in today’s Autumn Statement, George Osborne and Vince Cable should take a quick look at a dramatic drop in tax receipts after the last Budget. In March, stamp duty was hiked to 7 per cent for people buying property over £2m [...]
As Boris Johnson calls for EU renegotiation, should Britain just stay in the single market? December 4, 2012 YES Christopher Howarth It is essential that the UK renegotiates its EU membership. As we have argued for years, the economic and democratic costs are far too high. But we should not leave. The UK, particularly the City, benefits from the single market and doing business across Europe – something that would be more difficult [...]
Rapid Responses December 4, 2012 The tax debate [Re: Politicians need to stop moralising – and reform our taxes, yesterday] Britain’s tax system does not reward the working poor. Nobody on low wages should pay income tax or national insurance, while also receiving benefits. Chris Hobson We shouldn’t bring the level of tax into the debate about tax reform. To critics [...]