UK budget summary
Posted on April 24th, 2009 in
UK Crisis
- Budget is to pay for bail out of banks
- Unable to raise money on financial markets because our IOUs (Gilts) are worth nothing – in line with Portugal and Greece
- Deficit for 2009 at over 12% biggest of the G20 countries
- Big cut in public spending and over the near term and medium and long term
- Tax rises after next election for the poor and middle incomes
- Darling’s growth expectations laughed at by all – IMF reckon economy will shrink by 4.3% this year while Darling has us at 3,5% and IMF been behind the curve
- Darling expects recovery to start at end of 2009 – likely that economy will bottom out in mid 2010 with no recovery because of lack of credit from banks for individuals and corporations
- Budget assumes recovery and no more bailouts for banks – likely to be more money for bailouts and no recovery
- Global economy from Europe too US to Japan shows that the recession continuing at same pace and quickening up after a lull in February
- World ex China will effectively be in depression by end of 2010
- We are liable for another trillion pounds because of insurance of toxic assets
- Britain effectively bankrupt
- No money for stimulus programmes
- In summary we are going to pay a huge price for speculation and greed of the bankers and the neo-liberal dream
- Huge battles lie ahead over jobs, homes and public services around the world