Freethinkeruk’s Weblog

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Archive for the tag “recession”

The Budget

There can be little doubt that the Government should have seen the crash in the banking system and the housing market along with the approaching recession long ago. That though is now history and yesterdays budget was probably about the best that could be done in the circumstances.

There does seem to be however, a failure of government to recognise fully the seriousness of the situation and therefore a failure to make savings where they could easily be made and a failure to look at the bigger picture. For example, they could have cancelled the ridiculous I.D. Card scheme which is estimated to have a price tag of £15billion. This nation does not need two gigantic aircraft carriers at a current estimate of £6billion and defence estimates usually double by their completion. Equally we do not need to replace Trident nuclear submarines at even more billions of Pounds. We do not need either, to be fighting a futile war in Afghanistan at vast cost in cash and lives.

Virtually every household in the UK will be looking at where savings can be made and Government should do nothing less.

VAT Cut?

We only have to wait until tomorrow (Monday) to see how the Government will introduce measures in an attempt to boost the economy and help to take the edge off the recession. There is speculation that Alistair Darling will cut VAT from its current 17.5% to 15%. Now I am not an economist, I’m just a simple soul looking at the proposal in a simple sort of way. If I was thinking of buying an article currently costing £100 + VAT that’s £117.50 it would actually cost me. If I was thinking to myself that I couldn’t really afford it or perhaps I aught to wait a bit to see how things go, would making that price £2.50 cheaper persuade me? I think not!

I do think that this Government has handled the crisis rather well so far, although they should have seen it coming and prepared for it. However if what seems likely to be a VAT decrease in tomorrow’s statement, this will be a waste of of money in the order of £12bn doing little to stimulate our economy and if anything will benefit mainly foreign industry.

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