Darling's Budget takes shape
Peter Hoskin 9:04am
Yep, it's that time of the year again – when the government starts briefing about the contents of the Budget. First up, there's the news that Alistair Darling may cut projected borrowing figures by £5-10 billion, thanks to higher-than-expected tax receipts. And then there's Peter Mandelson's claim that new tax rises would have to be considered a year from now – implying, perhaps, that there won't many in this year's Budget.
Many folk around Westminister were surprised that the government was putting out a pre-election Budget – especially given the sorry state of the public finances. But Labour's plan is becoming clearer now: lower borrowing figures, no significant tax hikes, a few public spending giveaways here and there – all this will be sold as progress, of sorts. And as for already-announced tax rises, such as the national insurance hike, the government will hope that it has already taken the heat for them.
In which case, it will be the Tories' task to point out that the odd £5-10 billion doesn't stack up to much in the face of annual deficits of £170 billion and – crucially – a debt burden which will soon be pushing £1.5 trillion. In getting that message across, they may well be helped by the markets. All will be revealed next week.
Previous
Hawkeye
March 19th, 2010 9:31am Report this commentIf this is a "do nothing" budget or a "look how well we are doing" budget, then the markets will go nuts and the pound will slide even more.
Brown's budgets always unravel. I give this one a shelf life of 6 hours.
Sir Graphus
March 19th, 2010 9:40am Report this commentThere's a danger that the deficit being slightly better than feared will be spun as brilliant news.
Ian Walker
March 19th, 2010 9:47am Report this commentThe markets might help, but will the press?
Snowman
March 19th, 2010 11:25am Report this commentBefore Darling finishes his budget he should read carefully Mark Steyn’s latest: http://www2.macleans.ca/2010/03/18/your-‘downturn’-their-‘upturn’
The same goes for George Osborne, on whom, or so David Blackburn believes, the ‘gods are smiling.’
BenM
March 19th, 2010 11:40am Report this commentWho gives a toss what the markets say? This is repdutely, a democracy is it not? Why listen to the very people who got us all into this mess in the first place?
The government should be thinking about the people, not international financial failures.
Sir Graphus
March 19th, 2010 11:56am Report this commentThis news is the equivalent of "hey, fellas, one of my credit cards is £300 below its limit."
michael
March 19th, 2010 12:01pm Report this commentTwo fingers of fudge are just enough to give those stats a tweek.
Two fingers of fudge just ain't enough to win sufficient seats.
They're full of Cadbury workers they've chucked out on the streets.
Two fingers of fudge are just enough, this could be a real treat!
Greenslime
March 19th, 2010 12:24pm Report this commentBenM. Where you an ostrich in a previous life?
Sterence
March 19th, 2010 12:32pm Report this commentDoes anyone remember "pre-Budget purdah"?
MichaelT
March 19th, 2010 12:44pm Report this commentIf you believe BenM is bad here, you should read his postings on PB ( I am assuming no to BenM's could be so dire, obviously)... over there they assume he is in short trousers!
On the Budget, its all smokescreen and leaks. Lower expectations and deliver a crumb, therefore, not as bad as trailed, so it was obviously a success. New Labour, same old trick.
DangerDave
March 19th, 2010 12:53pm Report this commentGood point BenM, except for the fact that its the international money markets that have to buy the debt we produce (except that at the moment its mostly just the BOE that is buying our crap debt).
Therefore it is important what they they think as largely they are funding most of the public sector and social security.
p.s. Where's Richard?
Chris lancashire
March 19th, 2010 1:02pm Report this commentFrom another website this vox pop quote:"Labour got us into this mess so they're the best people to get us out of it."
I really do despair.
Ian Walker
March 19th, 2010 2:28pm Report this commentDangerDave: Under Harman's equality rules, Richard is forced to take five days off each month to prevent him from unfairly performing better than colleagues who pull regular sickies.
Snowman
March 19th, 2010 2:51pm Report this commentBenM @ 11.40:
if you borrow billions you can hardly complain that those who’ve lent you the money have you by the balls. Nothing to do with democracy, it’s common sense.
and another thing. Where were you when the insanity of ‘no boom and bust’, advanced by the same man who’s now in charge of the whole country, was on? Haven’t heard you complaining then.
Marcher Baron
March 19th, 2010 6:26pm Report this comment@Sterence "Does anyone remember "pre-Budget purdah"?"
I not only remember pre-Budget purdah, I recall one Chancellor resigning for allowing proposals to become known!
Ke H
March 19th, 2010 6:27pm Report this commentBen M
Just go back to your colouring books before bedtime:there's a good boy.
Back to top