Friday 22 March 2013

Budget Day & Flying Coffee Mugs

I do try and listen to the budget every year but i find it hard work, mainly because they wrap it all up in undecipherable politician speak and partly because it just makes me want to throw my mug at the television.
Last years budget with the pasty and caravan tax turned out to be a complete dogs ear with most of what Gideon said he would bring in being picked apart over the later months and pretty much all of it being scrapped.
Because it is put across in such a way, it isn't until a few days later that the experts have got to look at it and unravel it and then come onto the media and explain why it is such a dogs dinner and that is exactly what has happened with Gideons home loans plans which was put across as helping new buyers into the housing market only for it to turn into a great way for people to buy second homes which of course, doesn't help anyone who is trying to buy a home.
I will leave them to squabble over that but i do notice that anything the Chancellor hands out, the raise in personal allowance for example or the extra money for roads and the cut in corporation tax do not come into effect for another 18 or 24 months.
I understand that the 18 to 24 months gap will mean they will come in just before the next election so it is politically timed and they can still spend the next year and a half saying what they have done without actually having done it yet but because everyone is arguing over the home loan thing, nobody is catching on to the last bit of the speech about our debt after 3 years of austerity.
He explained that he is going to borrow £121bn this year, the same as last year and debt as a share of GDP to increase from 75.9% this year to 85.6% in 2016-17.
Whatever he is doing, it isn't working if the debt is going up after cutting and slashing at everything within sight and the answer he seems to conclude is to cut and slash harder and deeper.
If something isn't working, the answer can't be to carry on doing it even more but that's the point when the coffee hits the TV screen.

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