In an unprecedented weak budget spiked with half truths, Mr Darling is trying to ignite a class war in the UK in an attempt to boost the Labour Party election prospects – a dangerous game to play with our fragile economy at this time.
While any real and immediate public spending cuts are delayed until at least 2011, so not to disgruntle potential Labour voters, higher earners where hit hardest again. Labour is implying a ‘well-off association’ with bankers – who are to blame for this mess – to disguise it’s attempt to ignite a class war to hide it’s total failure on the economic & political front!
Not one word about Labour comp-licitness in our current problems – it was after all our current PM, then Chancellor Brown, who was warned over five years ago of the pending problems with the credit levels in the economy. Yet, the self-declared ‘saviour of the world’, did nothing to stop this problem when it was first publicly discussed in the media.
Any attempt to help small business, can at best be described as window dressing, no deference of the re-introduction of the higher VAT rate to 17.5%, which will hit small business hard. It is worth mentioning that Labour is breaking another promise by withdrawing support for the economy before the economy has emerged from recession.
Darling announced another £500mio in an business development fund, another £500mio that will never reach those small businesses that really need this money to survive. His ‘lending guarantee’ signed with the ‘state owned’ banks has also not come to anything.
As this government is running out of money and soon people it can squeeze for more tax, the outlook for our economy remains troubling at best. We need many more small business start-ups, which in time will create better and more secure jobs, than any of the big companies ever will.
Early indications via twitter and other online social media is that more and more people thinking about leaving the UK to set up shop abroad. Many saying if Labour is returned to power, they will leave next year!
The Shadow Chancellor Osbourne said ‘Britain is closed for business…!’, a sentiment echoed by more and more small business owners.
All in all this was not a Pre-Budget Report, the was a Pre-Election Manifesto.