A Dishonest Budget
The chancellor's description of the economic situation was bad enough, but the reality of the fiscal problems which the Labour government is leaving behind is even worse.
The Chancellor described the worst recession, fastest rising unemployment, and the worst public finances since the War, but could not describe a credible solution.
Even on the Government’s own figures:
Over the next two years, the Government will borrow £348bn – more than all governments up to 1997.
We will be borrowing £703bn over the next five years – £269bn more than the £434bn forecast in the PBR.
The national debt will double again to £1.4trillion.
Every baby will now be born owing £22,500.
Interest costs have risen again to £43bn a year – more than the schools budget.
But the Chancellor's growth predictions look highly optimistic. Within hours of the Budget the IMF predicted an even steeper recession this year and next. And Darling's predictions of 3.5% growth from 2011 onwards look unreasonably high.
If the IMF is right there will be an additional £23 billion hold in the government's finances.
This budget is dishonest for two reasons: it understates the degree of painful adjustment required, and it seeks to put too much of the painful measures which will be needed off until after the next election, which may be electorally convenient for the Labour government but is not in the interests of the British people.
The government's proposals involve tax hikes for everyone, not just the trumpeted tax increase on the rich - though most of the increases will only take effect after the coming election. They also propose to cut spending. Labour have cut their departmental spending plans by £9bn of current spending and £11bn capital spending by 2013:
£2.3bn off the NHS capital budget next year.
£0.6bn off the Schools department capital budget next year.
£0.3bn off Universities and Skills capital budget next year
If the Conservatives had proposed this Labour would describe it as "Slashing schools and hospitals."
Conservatives would favour spending restraint over tax rises, but unlike Labour we recognise that if the government starts to restrain the growth of spending immediately, rather than waiting until after the election, the cuts will not have to be so severe.
We would make every effort to cut administration and bureaucracy rather than front line services. We would scrap Labour's expensive ID cards scheme.
Britain cannot afford another five years of Labour incompetence. It's time for a change
The Chancellor described the worst recession, fastest rising unemployment, and the worst public finances since the War, but could not describe a credible solution.
Even on the Government’s own figures:
Over the next two years, the Government will borrow £348bn – more than all governments up to 1997.
We will be borrowing £703bn over the next five years – £269bn more than the £434bn forecast in the PBR.
The national debt will double again to £1.4trillion.
Every baby will now be born owing £22,500.
Interest costs have risen again to £43bn a year – more than the schools budget.
But the Chancellor's growth predictions look highly optimistic. Within hours of the Budget the IMF predicted an even steeper recession this year and next. And Darling's predictions of 3.5% growth from 2011 onwards look unreasonably high.
If the IMF is right there will be an additional £23 billion hold in the government's finances.
This budget is dishonest for two reasons: it understates the degree of painful adjustment required, and it seeks to put too much of the painful measures which will be needed off until after the next election, which may be electorally convenient for the Labour government but is not in the interests of the British people.
The government's proposals involve tax hikes for everyone, not just the trumpeted tax increase on the rich - though most of the increases will only take effect after the coming election. They also propose to cut spending. Labour have cut their departmental spending plans by £9bn of current spending and £11bn capital spending by 2013:
£2.3bn off the NHS capital budget next year.
£0.6bn off the Schools department capital budget next year.
£0.3bn off Universities and Skills capital budget next year
If the Conservatives had proposed this Labour would describe it as "Slashing schools and hospitals."
Conservatives would favour spending restraint over tax rises, but unlike Labour we recognise that if the government starts to restrain the growth of spending immediately, rather than waiting until after the election, the cuts will not have to be so severe.
We would make every effort to cut administration and bureaucracy rather than front line services. We would scrap Labour's expensive ID cards scheme.
Britain cannot afford another five years of Labour incompetence. It's time for a change
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