Wednesday, March 20, 2013

UK budget - not one for growth

I wanted this being big tax cuts, funded by a serious capping on the welfare state, cutting of wasteful state spending and bureaucracies, supported by some privatisation.

Small tax cuts on companies and on beer, a worthwhile increase in the income tax free threshold to £10k.  Small tax increases on other alcoholic drinks, owning a car, catching a flight and elimination of some tax credits and a mini Fanny Mae type mortgage guarantee scheme, and subsidised loans for home buyers.  There were some new exemptions on climate change obligations for some sectors, which is promising.

Overall, nothing much to see at all.  Public debt growing to close to 100%, budget deficit at levels higher than any OECD country and economic growth forecast to only be 0.6%.

No, the Conservatives wont be winning in 2015 at this rate, and no Labour offers nothing more than a bit more borrowing and a bit more money thrown at public housing and railway projects.  

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