# Britain's Austerity Budget



## wayneL (23 June 2010)

Coming to a pseudo-Keynesian economy near you. 

http://www.telegraph.co.uk/finance/...cer-issues-toughest-Budget-for-a-century.html



> Budget 2010: George Osborne the enforcer issues toughest Budget for a century
> 
> Every household in Britain will be worse off after George Osborne unveiled £29 billion worth of annual tax rises and the biggest cuts in public spending for almost a century.
> 
> ...


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## Bushman (23 June 2010)

wayneL said:


> Coming to a pseudo-Keynesian economy near you.
> 
> http://www.telegraph.co.uk/finance/...cer-issues-toughest-Budget-for-a-century.html




Making Britian 'great' again. The death of 'New Labour' and Scottish PMs. 

Not such a bad thing really. 

Austerity and taxation is the new normal. US is next which could see a tin pot like Palin get in which a bit scary. Bit like Carter and Ronny in the early 80s?


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## Aussiejeff (23 June 2010)

wayneL said:


> Coming to a pseudo-Keynesian economy near you.
> 
> http://www.telegraph.co.uk/finance/...cer-issues-toughest-Budget-for-a-century.html




_"Dear Pom.

Your glum English winters are about to get a tad glummer....!!

Where Brit gummint types pull their "economic growth" forecasts out of, I haven't a clue.

Since most any "growth" occurring in Britain since the start of GFC has been primarily gummint spending based, how in hell do these wallies contemplate any further "growth" when they are going to SLASH that very same gummint spending that promoted said "growth"??

Oh, yeah. They have found a solution to Catch-22? They want to have their cake AND eat it, huh? Hmmm. Might choke too... 

Good luck, poor poms.

Chiz,

Colonial Cur."   _


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## Aussiejeff (23 June 2010)

Then there is this hopeful quote from British Chamber of Commerce chief economist David Kern (my underlines):



> "The budget could be a defining moment in Britain's economic history. If successful, the Chancellor's plan could put the UK on the path toward a sustainable recovery."




on the other hand, to balance that optimistic assessment that quote could also be re-written as ...



> "The budget could be a defining moment in Britain's economic history. If *un*successful, the Chancellor's plan could put the UK on the path toward a sustained recession/depression."




Take your pick.


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## drsmith (23 June 2010)

1) Cuts of up to 25% to Whitehall departments (part of their public service I assume).
2) VAT up from 17.5% to 20%.
3) Income tax increased (lowering of threshold).
4) Capital gains tax raised from 18% to 28%.
5) Banks charged a levy (2bn pounds/year).
6) Reductions in child care benefits.
7) Public sector salaries pegged (frozen I assume) for 2 years.

These kind of measures will be our fate too during the next resources downturn as governments, both Coalition and Labor have failed to undertake adequate tax reform during the boom years.


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## Aussiejeff (23 June 2010)

drsmith said:


> 1) Cuts of up to 25% to Whitehall departments (part of their public service I assume).
> 2) VAT up from 17.5% to 20%.
> 3) Income tax increased (lowering of threshold).
> 4) Capital gains tax raised from 18% to 28%.
> ...




We also now have the ludicrous situation of the Eurozone embracing a policy of massive *reductions* in gummint stimulus (spending) in order to save the World vs the US & China (and us) embracing a policy of massive *increases* in gummint stimulus (spending) in order to save the World.

Freaky, wot?!! 

I have a bad feeling about this....


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## wayneL (23 June 2010)

drsmith said:


> These kind of measures will be our fate too during the next resources downturn as governments, both Coalition and Labor have failed to undertake adequate tax reform during the boom years.



That's why I said:



> Coming to a pseudo-Keynesian economy near you.


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## baby_swallow (23 June 2010)

They decided not to follow their Yankee cousins - running money printing presses 24/7. (ie. Friedman vs Keneysian economics)


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## drsmith (23 June 2010)

wayneL said:


> That's why I said:



We should all say no, no, no, *NO!* to any change in the GST rate or ours too one day will be 20% (or more ?).


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## UBIQUITOUS (23 June 2010)

baby_swallow said:


> They decided not to follow their Yankee cousins - running money printing presses 24/7. (ie. Friedman vs Keneysian economics)




Errr...yes they did. They printed about $200B and termed it Quantitative Easing. They're putting on the brakes FAR too early in my opinion and are totally screwed. Japan like deflation is going to hit the UK for a very long time. Not even a war will fix things.


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## wayneL (23 June 2010)

UBIQUITOUS said:


> Errr...yes they did. They printed about $200B and termed it Quantitative Easing. They're putting on the brakes FAR too early in my opinion and are totally screwed. Japan like deflation is going to hit the UK for a very long time. Not even a war will fix things.



No, they hit the brakes far too late.

It were Crash Gordon that fitted a supercharger to the printing press and ran it on nitrous oxide. This lot, over the long term are doing the right thing, but they will have to do more.


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## trainspotter (23 June 2010)

You have to pay the Piper at some stage I guess. Seeing how goold old Mother England does not have vast mineral wealth that they can plunder their only option is to lop off expenditure on the public servant sector a'la Yes Minister style. Next best thing is to tax the peasants into submission and place levies/roylaties and other such like devices to ensnare more of the monoploy money in the system.

Coming soon to a shore near you real soon ! USA next to cover their debt ratio ..... who could possibly next? I like the fact they are actually attempting to rein in the debt by cost cutting instead of stimulus spending. Sound familiar?


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## UBIQUITOUS (23 June 2010)

wayneL said:


> No, they hit the brakes far too late.
> 
> It were Crash Gordon that fitted a supercharger to the printing press and ran it on nitrous oxide. This lot, over the long term are doing the right thing, but they will have to do more.




I'm of the view that the dye was cast ever since leaving the gold standard and QE was just a lot of icing on the cake. Forget the kids, the only option is to inflate the debt away.


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## trainspotter (28 June 2010)

Heeeeeeeeyyyyyy ! What about Australia?? We did all this a well ....... didn't we? Why don't we get a mention?

_"All the G20 had to do was take a close look at Canada. Sure, it returned to deficit after a decade of budget surpluses once the recession hit and stimulus was deployed. But Canada now boasts the strongest recovery among industrialized countries, with deficit and debt levels that are well below their Group of Seven peers. This was largely result of the heavy lifting done in the 1990s to restore fiscal order -— spurred in part after The Wall Street Journal said back then Canada had become a “honorary member of the Third World” because of its ballooning debt." _

Remember the "Banana Republic" jibe from Keating? Remember Howards way with paying off debt? NAaaaaaaahhhh didn't happen now did it?

*Paul Vieira and David Pett, National Post · Sunday, Jun. 27, 2010*

http://www.nationalpost.com/news/canada/Canada+scores+solid+experts/3209232/story.html

Halve their deficits by 2013 .... pure bunkum. I especially liked this statement "“I think there was a collective realization that, whether you think more stimulus is a good or not, you have to turn off the taps because bad things like Greece — will happen,” said Finn Poschmann, vice-president of research at the C.D. Howe Institute, a think-tank."

Anyone listening ??


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## wayneL (28 June 2010)

trainspotter said:


> Cant spell Austraria




Nah! Just got a bit ahead of yourself mate. It will be at least a decade before it is pronounced as such... probably a quarter century before it is eventually spelled that way.


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## Aussiejeff (28 June 2010)

wayneL said:


> Nah! Just got a bit ahead of yourself mate. It will be at least a decade before it is pronounced as such... probably a quarter century before it is eventually spelled that way.




Prees exprain? :karate:


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## noirua (13 November 2021)

The UK's 2021 autumn Budget – what it means for their money​28 October 2021



			https://www.hl.co.uk/news/articles/the-2021-autumn-budget-what-it-means-for-your-money?utm_source=Silverpop&utm_medium=email&utm_campaign=Autumn%202021%20Budget%20article%20email%2028%20Oct%2021%20(1)&utm_content=www_hl_co_uk_news&theSource=EOA71&Override=1&sp_mid=70801915&sp_rid=amFtZXNnYWtlcnNAZ21haWwuY29tS0&fbclid=IwAR1FE8QsMiZ-ZrhZ8kU379WS_F8k8r0C2jpx6Yu03-vqncJf_WAcK0H9Tns


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