So that was an interesting day. The UK government is borrowing 118 billion pounds by next year. Three times the previously expected amount and a historic high, higher event than in the 70's when UK plc was truly in the toilet and borrowing from the IMF.
Big changes in tax too, with a new 45% tax rate for higher earners. Seems just like the eighties never happened. I never subscribed to trickle down economics but we've lived with the idea since Reagan and Thatcher decided that making the rich richer means they will spend money on the poor rather than just making themselves richer.
None of the economic forecasters seem to know if this is the right plan or not, so I'm certainly not qualified to offer and argument, however the plan is banking on some pretty swift recovery figures and strong growth by 2010, which I feel is pretty optimistic. I certainly won't be spending any of my extra cash.
Top