Thursday, April 23, 2009

Musings at Yesterday's Budget

Well its 02.00 on Thursday 23rd April and a quick check of all of the UK political websites show the individual Political Parties response to Darling's Budget - all except UKIP. Even the BNP have issued its views and yet UKIP (the 'Third/Fourth Force' in British politics) says nothing - O well, perhaps they are waiting for Nigel to get out of the pub to give his percieved wisdom - after all, its still early isn't it?

Well, we have just a few comments to make, and perhaps UKIP can copy them to save them making it up on their own:

1. Total government debt will double to 79% of GDP by 2013 - the highest level since the Second World War. The annual budget deficit will rise sharply to £175bn for the next two years

Assuming Darling's figures are correct (and they haven't been so far) we can see considerable devaluation of the £, hyper-inflation in a couple of years and much higher taxation levels than currently experienced.

New World Order Consipracy Advocates will see this as a deliberate attempt to ruin the currency and economy, with a view to the development of a single World Currency, Bank and Government - who knows?

2. A new 50p tax rate for earnings over £150,000.

This is just a token gesture - it will bring in a pittance - but Brown believes will obtain good headlines - as even the wealthy will pay.

Wrong, most will be able to avoid this via clever accounting techniques, but worse still, Brown has broken a General Election Pledge - not to raise Direct Taxation. This, coupled with the false promise for a referendum on the Lisbon Treaty, means that election pledges mean nothing - Yes that will certainly instill confidence in our Political system.

3. Fuel duty will increase by 2p per litre in September and then by 1p a litre above inflation each April for the next four years.

The further development of a 'carbon tax' protecting our environment. Most informed individuals do not believe this 'global warming' scam, but nevertheless, we will all have to pay for it - roll on the electric/solar car. The problem is, while oil is only $50 a barrel, Brown can get away with it. What happens if it rises to $150 + again?

4. Mr Darling confirmed the economy would shrink by 3.5% in 2009, with a forecast of 1.25% growth next year rising to 3.5% in 2011.

Well, we may agree with the first figure, but the rest is fantasy land. Unemployment will continue to rise for at least 12 months. Manufacturing hardly exists, unless it is heavily subsidised, and the City is in turmoil. It certainly suits Labour to suggest that the economy will improve once the General Election is over, as it provides promise before hand, and should the Conservatives win, not achieving these figures, will be blamed on them - quite simple really.

There is more to add, but the BBC and Press will cover most of the points. We feel, that while in the short-term, the borrowing will alleviate some of the worst effects of the Depression, it will cause considerable pain for the UK Economy for the next 5 - 10 years (if not longer). There are hard times ahead and we do not believe there is one Political Party currently in the UK that is able, or sufficiently competent to deal with, the disaster, this Labour Government has considerably contributed to, if not caused.

It's 02.20 and still no comment from UKIP - must be a 'sit-in'.

No comments: