Budget 2008: Brown's wasted years
Michael Fallon 3:37pmFive years ago, Gordon Brown’s 2003 Budget forecast that the current budget would now be in surplus by £9 billion. That might have allowed the new Chancellor to cut taxes for the lowest-paid, or to invest more money in our third world infrastructure.
In fact, the budget never got into surplus at all. Brown conceded a year ago that the deficit this March would be £4 billion. In October Alistair Darling increased that to £8.3 billion. The City fears it will turn out even higher.
The good years have been wasted. The budget is now forecast to reach surplus by 2010, four years later than originally planned. Overall debt today is £541 billion, £69 billion higher than planned five years ago.
Who pays for these mistakes? We all do. Debt interest now costs as much as the entire defence budget. Northern Rock adds even more.
The biggest burden falls on those at the bottom. The lowest paid who must pay twice as much tax as those earning the same in Ireland. The pensioner struggling to pay ever-increasing council tax from a fixed income. Small businesses whose tax rate is going up this year.
In government, we cannot, should not, must not “match” this failure. Proper spending control is the key to fairer, lower taxes.
Michael Fallon is MP for Sevenoaks and the senior Conservative on the Treasury Select Committee.
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ChrisD
March 9th, 2008 4:27pm Report this commentSo in effect we continue to have a budget deficit, but the Treasury can produce a budget forecast which neatly slips into surplus around about election time?
Got it!
Praguetory
March 9th, 2008 5:20pm Report this commentAs usual Michael *gets* that we need to cut taxes and that the best area to cut taxes to promote work and enterprise is the burden on the poorest. Fallon for Chancellor.
TGF UKIP
March 9th, 2008 6:49pm Report this commentPraguetory, you're dead right. With Fallon as Shadow Chancellor, instead of "zero credibility" Boy George, the Tories would have an altogether larger and less brittle opinion poll lead. I rather think, though, that Fallon mustn't really have the right sort of friend.
mike
March 10th, 2008 11:55am Report this commentWasted years, not so. Most folk have had a pretty good last ten years. Alas all good things must come to an end, and this may be nearing it's end. But so what, we'll just have to start another good ten years.
leo
March 14th, 2008 5:41pm Report this commentbrown five years back couldnt have predicted the credit crunch and northers rock disasters. There has been more borrowing than expected pumping up the deficit. There is an ongoing economic turbulence.. they would come out of this .. soon.
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