Telegraph
"The Prime Minister Gordon Brown has said the Budget will be delivered on March 24, in what will be one of the most hotly anticipated statements since Labour came to power. ...It will come just weeks ahead of a general election, which is widely expected to held on May 6, and the Chancellor Alistair Darling will be under pressure to outline measures for supporting economic recovery. At the same time, he has to convince financial markets the Government has a credible plan for reducing Britain’s record deficit. "
Wednesday, 10 March 2010
Government's plan to cut the deficit is lacking something ... the cuts
Telegraph
"Many dismal scientists have, of late, predicted a sterling crisis if Britain acts quickly to address its appalling public deficit — none more so than those at UBS. "
"Many dismal scientists have, of late, predicted a sterling crisis if Britain acts quickly to address its appalling public deficit — none more so than those at UBS. "
Tuesday, 9 March 2010
Pound falls below $1.50 again as credit agency warns that efforts to cut deficit are moving at 'pedestrian pace'
Daily Mail
"The Government's attempts to tackle its mounting national debt are taking place at a 'pedestrian pace' that is 'too slow', an influential ratings agency warned today.In a boost to the Tories, Fitch insisted that the shortfall in the country's finances must be reduced quickly because the nation’s credit profile has 'deteriorated'.Its head of global economics Brian Coulton warned: 'If we don’t get an improvement in the medium-term outlook in the UK, there will be cause for concern.'The declaration sparked fresh fears about the strength of the UK's economic recovery and prompted the pound to hit a week-long low of $1.4965 against the dollar this afternoon.And there was further dire economic news as new figures showed that exports took their biggest plunge in more than three years in January."
"The Government's attempts to tackle its mounting national debt are taking place at a 'pedestrian pace' that is 'too slow', an influential ratings agency warned today.In a boost to the Tories, Fitch insisted that the shortfall in the country's finances must be reduced quickly because the nation’s credit profile has 'deteriorated'.Its head of global economics Brian Coulton warned: 'If we don’t get an improvement in the medium-term outlook in the UK, there will be cause for concern.'The declaration sparked fresh fears about the strength of the UK's economic recovery and prompted the pound to hit a week-long low of $1.4965 against the dollar this afternoon.And there was further dire economic news as new figures showed that exports took their biggest plunge in more than three years in January."
UK's growing trade gap sends sterling below $1.50
The Times
"Sterling slumped on foreign exchanges again this morning after it was revealed that Britain’s trade deficit with the rest of the world unexpectedly widened during January.Britain’s deficit in global goods widened to £7.987 billion during January, the biggest total since August 2008.This was up from £7.01 billion in December and compared with the £7 billion that City economists had expected.Sterling, which had traded at $1.5067 earlier in the session, sank to $1.4948 immediately after publication of the figures. "
"Sterling slumped on foreign exchanges again this morning after it was revealed that Britain’s trade deficit with the rest of the world unexpectedly widened during January.Britain’s deficit in global goods widened to £7.987 billion during January, the biggest total since August 2008.This was up from £7.01 billion in December and compared with the £7 billion that City economists had expected.Sterling, which had traded at $1.5067 earlier in the session, sank to $1.4948 immediately after publication of the figures. "
Another £20bn of tax rises and spending cuts will be needed, PwC says
Telegraph
"The accountant said its projections were based on less optimistic UK growth forecasts over the medium term compared with the Treasury. PwC said that trend growth rate in the UK is likely to be 2.25pc a year, and not the 2.75pc forecast by the Treasury.It estimated that Government borrowing would be around 5pc of gross domestic product in 2014-15, higher than the Treasury's forecast of 4.4pc. PwC said the fiscal gap could be closed through many possible combinations of tax rises and spending cuts starting from 2011-12 and building up to around £20bn a year by 2013-14. "
"The accountant said its projections were based on less optimistic UK growth forecasts over the medium term compared with the Treasury. PwC said that trend growth rate in the UK is likely to be 2.25pc a year, and not the 2.75pc forecast by the Treasury.It estimated that Government borrowing would be around 5pc of gross domestic product in 2014-15, higher than the Treasury's forecast of 4.4pc. PwC said the fiscal gap could be closed through many possible combinations of tax rises and spending cuts starting from 2011-12 and building up to around £20bn a year by 2013-14. "
Monday, 8 March 2010
Portugal budget plan cuts investment, caps wages
Reuters
"LISBON (Reuters) - Portugal plans to cut its budget deficit to below the EU's 3-percent limit by 2013 by reducing investment and capping public sector wage growth, although it will also rely on the economy recovering from this year.The plan, which Portugal has to submit to Brussels, projects a fall in the deficit to 2.8 percent of gross domestic product in 2013 from 8.3 percent this year and also raises taxes on high incomes and stock market gains, according to a draft document.The Socialist government's austerity plan, whose growth forecast for 2011 is broadly in line with latest published projections by the European Commission, is seen as key to convince markets Portugal will tackle rising deficits and debt. That in turn is vital as investors assess whether the country may be next in line to run into Greece-style fiscal problems."
"LISBON (Reuters) - Portugal plans to cut its budget deficit to below the EU's 3-percent limit by 2013 by reducing investment and capping public sector wage growth, although it will also rely on the economy recovering from this year.The plan, which Portugal has to submit to Brussels, projects a fall in the deficit to 2.8 percent of gross domestic product in 2013 from 8.3 percent this year and also raises taxes on high incomes and stock market gains, according to a draft document.The Socialist government's austerity plan, whose growth forecast for 2011 is broadly in line with latest published projections by the European Commission, is seen as key to convince markets Portugal will tackle rising deficits and debt. That in turn is vital as investors assess whether the country may be next in line to run into Greece-style fiscal problems."
Portugal follows Greece on austerity path
Reuters
"LISBON/BRUSSELS (Reuters) - Portugal became the latest euro zone country to announce austerity measures to rein in a ballooning budget deficit on Monday as debt-stricken Greece urged global action to curb speculation in credit default swaps."
"LISBON/BRUSSELS (Reuters) - Portugal became the latest euro zone country to announce austerity measures to rein in a ballooning budget deficit on Monday as debt-stricken Greece urged global action to curb speculation in credit default swaps."
Solution: emigrate to lands where your preferred laws run
Andrew Bolt, Herald Sun, Australia
"The legal system that makes this country so safe and attractive to so many Muslims is one that’s blind to your gender, class and faith. So why destroy one it’s most vital principles - and destroy, too, the concept that our laws form a community from a collection of tribes: "
"The legal system that makes this country so safe and attractive to so many Muslims is one that’s blind to your gender, class and faith. So why destroy one it’s most vital principles - and destroy, too, the concept that our laws form a community from a collection of tribes: "
'Hypocrite' Harman refuses to answer questions about Labour's major funders
Daily Mail
"Labour was accused of 'rank hypocrisy' last night over non-doms after Harriet Harman refused to answer questions about her party's major donors.The deputy leader refused to say whether some of Labour's biggest backers paid all their taxes in the UK, insisting it was a 'private matter'.Her refusal to come clean follows criticism from a string of ministers over the tax status of Tory donor Lord Ashcroft.Business Secretary Lord Mandelson last week insisted that Labour should be 'clear and upfront' about whether its backers were full British taxpayers.Labour is estimated to have taken more than £10million since 2001 from non-doms - those who legally avoid paying tax on their overseas earnings - including Lord Paul, Sir Ronald Cohen and William Bollinger.But in an interview with BBC1's Andrew Marr Show, Miss Harman repeatedly refused to discuss their tax status, insisting she did not know whether they were non-doms.She said: 'The tax status of donors is not an issue for electoral law. People's tax affairs is [sic] a private matter.'
"Labour was accused of 'rank hypocrisy' last night over non-doms after Harriet Harman refused to answer questions about her party's major donors.The deputy leader refused to say whether some of Labour's biggest backers paid all their taxes in the UK, insisting it was a 'private matter'.Her refusal to come clean follows criticism from a string of ministers over the tax status of Tory donor Lord Ashcroft.Business Secretary Lord Mandelson last week insisted that Labour should be 'clear and upfront' about whether its backers were full British taxpayers.Labour is estimated to have taken more than £10million since 2001 from non-doms - those who legally avoid paying tax on their overseas earnings - including Lord Paul, Sir Ronald Cohen and William Bollinger.But in an interview with BBC1's Andrew Marr Show, Miss Harman repeatedly refused to discuss their tax status, insisting she did not know whether they were non-doms.She said: 'The tax status of donors is not an issue for electoral law. People's tax affairs is [sic] a private matter.'
Sunday, 7 March 2010
British taxpayers to fork out millions more in benefits for EU migrants
Daily Mail
"Taxpayers face paying millions of pounds in extra benefits to Eastern European immigrants because of changes to EU regulations.For the past seven years, immigrants from eight countries due to become full members of the EU were banned from claiming benefits in the UK until they had worked here for 12 months.But from April 2011, immigrants from Poland, Estonia, Latvia, Hungary, Lithuania, Slovakia, Slovenia and the Czech Republic – where income levels are 40 per cent of the European average – will be allowed to claim Jobseekers’ Allowance and other benefits after just three months."
"Taxpayers face paying millions of pounds in extra benefits to Eastern European immigrants because of changes to EU regulations.For the past seven years, immigrants from eight countries due to become full members of the EU were banned from claiming benefits in the UK until they had worked here for 12 months.But from April 2011, immigrants from Poland, Estonia, Latvia, Hungary, Lithuania, Slovakia, Slovenia and the Czech Republic – where income levels are 40 per cent of the European average – will be allowed to claim Jobseekers’ Allowance and other benefits after just three months."
Land of Rising Sun watches as Greek star wanes
Telegraph
"The Japanese have always been fascinated with Europe. They modelled their system of government on Britain’s, as well as their health care system and roads; their railways owe something to France; their banks are being remodelled in German fashion. But right now it is another less familiar nook of Europe that is provoking the most attention: Greece.
No prizes for guessing why. With Athens having last week agreed a set of unprecedented austerity cuts and declared itself open to the prospect of an International Monetary Fund bail-out, the Japanese are asking themselves whether a similar fate lies in store for them."
"The Japanese have always been fascinated with Europe. They modelled their system of government on Britain’s, as well as their health care system and roads; their railways owe something to France; their banks are being remodelled in German fashion. But right now it is another less familiar nook of Europe that is provoking the most attention: Greece.
No prizes for guessing why. With Athens having last week agreed a set of unprecedented austerity cuts and declared itself open to the prospect of an International Monetary Fund bail-out, the Japanese are asking themselves whether a similar fate lies in store for them."
Saturday, 6 March 2010
A weak pound is no substitute for making tough decisions on debt
Telegraph
"There are growing concerns not only about Britain's dire fiscal position, but that this country's political classes lack the grit and determination to do anything about it.The deeper fear stalking the markets, in fact, is that gutless policymakers have concluded, sotto voce, that a lower pound and a dose of inflation are just the ticket - the least worst way for the UK to "tackle" its fiscal predicament."
"There are growing concerns not only about Britain's dire fiscal position, but that this country's political classes lack the grit and determination to do anything about it.The deeper fear stalking the markets, in fact, is that gutless policymakers have concluded, sotto voce, that a lower pound and a dose of inflation are just the ticket - the least worst way for the UK to "tackle" its fiscal predicament."
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