Pre_Budget Report: Robbing Peter to Pay Paul

Pre-Budget Report: Robbing Peter to Pay Paul

The Pre-Budget Report is due to be delivered by the Chancellor, Alastair Darling on Monday at 3.30pm with speculation that sweeping changes will be made to VAT, to reduce costs for the consumer as well as keeping the economy moving.

Suggestions are that the Government will borrow up to £100bn to pay for keeping the economy moving.  That is nearly 10% of the total GDP of the UK.

In short, a massive overdraft of 10% of your salary.  For the whole country!

Not since the times of Denis Healey, Labour Chancellor in the 1970’s have we seen the country in such a state of government fiscal spending.  

What did it create? Remember recession? Remember 3m unemployed? Remember Margaret Thatcher being despised when making some real tough decisions because she had to pay off ‘Labour’s Overdraft’?

She eventually got us out to a more stable economy, Labour called it ‘boom-bust’ but guess who created it?

We suggest there are some real difficult times ahead.  At some point, this huge borrowing by ‘Robbing Peter’ will have to be repaid.  We suggest Labour will not be in power to have to deal with this problem and Messrs Cameron and Co will be left ‘Pay Paul’.

Useful links:

Request expert financial advice now

Purchase guidance on financial planning in the Money Shop 

Back to News Summary