Monthly Archives: November 2008

My concern about the UK economy has centred around the large banking sector relative to National Income and tax revenue, the large consumer deficit, and the growing government deficit. I have felt the government has been running too much financial risk, whilst the economy itself will enter a period of no growth followed by relatively [...]

Borrow, borrow, and borrow again. The government is living in a fantasy world, where foreign investors and rich British people have to lend to the government to spend like there was no tomorrow. Their political strategy seems geared to a Spring 2009 election which they will back away from when they see the opinion polls, [...]

Tradition has it that immediately following a Budget statement the Commons gets to vote on urgent tax changes, and then proceeds to a debate extending over several days to go in to all the detail of the Budget. Today we has a so called Pre Budget Report, which warrants a Ministerial statement followed by a [...]

According to the Pre Budget book the revenue loss next year, 2009-10, will be a stunning £72.7 billion. £8.6 billion of that is the policy change on VAT. The rest is the impact of the recession on Stamp Duty, NIC, Income Tax, Corporation Tax and the rest. The borrowing this year was said by the [...]

Just about the worst tax cut they could design is a VAT cut. It’s costly on the revenue, but will have little impact on the problem. People do not feel well off. Offering them 2.5% off dearer items at a time when the shop and showroom prices are already 10-20% down is not going to [...]

To:Prime Minister From Political Adviser I am writing today because your political strategy runs the risk of being undermined by events. Of course you are good at crafting an economic policy to make it as difficult as possible for the Tories. It was one of your best victory rolls, after all those years of condemning [...]

This morning the Today programme kept repeating that the Conservatives have done a U turn on public spending. Instead what they did was do exactly what they promised – agree to Labour spending up to 2009, and then review it. They have now reviewed it and decided spending has to be lower than Labour plans [...]

On September 13th 2007 I posted a blog which was very critical of the Chancellor’s important remarks on banking. Mr Darling told us: “Institutions have in some cases been prepared to lend to people without checking if they were ever going to repay it” “Institutions themselves need to open their eyes and be more honest” [...]