Budget brought forward

[SMorgan]

The budget has been brought forward by six weeks. While some are saying it’s a sign of panic, it would be hard to see it as anything other than a sensible move given the economic situation. The problem have to be met head on.

However, get ready for some extreme measures with possible increases in tax and duty of fuel and some very deep and painful cuts.

[pete]

However, get ready for some extreme measures with possible increases in tax and duty of fuel and some very deep and painful cuts.

After the last cuts involved ban on civil servants printing in colour maybe this time will have to print in both sides of the page.

The deficit is 8 billion give or take a few hundred million. What percentage of GDP is that?

[Reality Bites]

A very Welcome Development!!! - I was starting to think this Government was burying its head in the Sand - It will be tough though -PAYE increase I suspect - 43% for higher earners!

[Macy]

So after most of the year pretending it wasn't happening and doing nothing, the Government are going to carry on doing nothing for another couple of months. What nonsense, they clearly haven't a clue how to handle this and are trying to give themselves breathing space.

[shakermaker1982]

When you do something like this it's sending out signals that you are pressing the panic button. If Brown/Darling did something similiar in the UK it would be pandemonium.

[Reality Bites]

When you do something like this it's sending out signals that you are pressing the panic button. If Brown/Darling did something similiar in the UK it would be pandemonium.

Darling comments that UK was it the worst Economic crisis for 60 years was worst in my opinion

[pete]

As the government is unable to control its own spending it will spend the next month looking at ways of taxing the rest of us.

[dahamsta]

A very Welcome Development!!! - I was starting to think this Government was burying its head in the Sand - It will be tough though -PAYE increase I suspect - 43% for higher earners!

This government? 43% for those below the poverty line more like...

[Macy]

At the very least the tax bands will be frozen, which is an effective tax increase. There should (but won't) be an immediate suspension of any tax avoidance loopholes.

They'll also introduce a raft of carbon taxes, as they can blame that on the Greens. And the money won't be ring fenced for environmental issues.

[shakermaker1982]

Darling comments that UK was it the worst Economic crisis for 60 years was worst in my opinion

Darling was on an island with his wife + reporter and may have let his guard down in the cosy surroundings. The reporter who got the scoop admitted himself that Darling would never in a million years say something like that if he was in London. Bringing the budget forward isn't a slip of the tongue, it has been discussed at the top level and an admission they need to act fast because things are running away from them.

[Reality Bites]

Advice to Government on meeting with Social Partners - Stand Firm and Freeze Public Pay!

[OneRedArmy]

I actually agreed with something Lenihan said yesterday, which was a first. He said (in the context of budget speculation) that we are focusing far too much on ideas to prop up the property and housing sector, when the economy is a lot broader than that.

Obviously his predecessors didn't do this and only added fuel to the housing market, but it was definitely a welcome acknowledgement that re-instating the first time buyers grant or some other scheme isn't going to be a panacea for all our ills.

Its a shame the Government have wimped out on cutting 6,000 civil service jobs. They benefited from benchmarking in the good times so they should take the same hits as the private sector in the bad times.

[pete]

Its a shame the Government have wimped out on cutting 6,000 civil service jobs. They benefited from benchmarking in the good times so they should take the same hits as the private sector in the bad times.

Coincidently the public sector will say now that they want out of benchmarking.

I imagine most people if told that downturn would last 2 years & they would have to take pay freeze for that time but also guaranteed to keep their job would take that.

[Macy]

But the last benchmarking gave most public servants a zero percent increase?

If the reference to the job losses is a reference to the Indo article, it's a load of nonsense anyway, spun to suit INM's own agenda.

[pete]

But the last benchmarking gave most public servants a zero percent increase?

That was because I think for the first time the better public sector pensions were factored into the mix. Not trying to drag this off topic too much.

I would that the 2 year pay freeze for guaranteed job if offered. In my private sector company one bad year is all it takes for jobs to be cut.