Wednesday, December 09, 2009

Darling Takes Centre Stage

Today's the day that the Chancellor makes his pre-budget statement and in the six months since his budget it would appear that he has failed to get his predictions right. Industrial output failed to grow in October, which is considerably worse than Darling expected in April. Indeed gloomy manufacturers are not expecting output to increase in future months, therefore putting Darling behind the optimistic curve he tried to portray in the Budget.

The Chancellor has already said he will be protecting spending on front line health and policing, as well as education. So it is widely expected that spending cuts will occur elsewhere, as much as 15% is expected in some departments. Ironically when the Labour Government was branding David Cameron Mister 10% when he first talked about having to make cuts in public sector budgets.

There is also the awaited introduction of the Super Tax being imposed on big city bonuses to help finance the loans the Government has made to that sector, whether this is an one off or a longer term imposition exerts expect the Chancellor to announce later.

However, it is speculated that if Darling wanted to hold off until after the election to impose his plans it may be too late as Britain is in serious threat of losing its Triple-A Credit rating. It seems that he is going to have to act with the scalpel before the Prime Minister is able to go to the country.

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