More tax rises

[DimPrawn]

The government borrowed more than expected in February, figures released just days ahead of the UK Budget show.
Public sector net borrowing - the government's preferred measure - hit £2.3bn in February, up from £1.4bn the Office for National Statistics said.

As a result, over the first 11 months of the fiscal year the total UK deficit stood at £31.7bn, compared with the Gordon Brown's forecast of £37bn.

Many experts have warned Mr Brown will have to raise taxes to cut borrowing.

In December the International Monetary Fund (IMF) warned that Mr Brown's tax forecasts had been too optimistic , adding he may have to increase taxes by £6bn in order to meet his forecasts.

'Disappointing' figures

The latest deficit figures were the worst recorded for February since the government came to power in 1997.

"The figures are disappointing on both the accruals and the cash measures and the story this month is that there has been an acceleration in expenditure and a slowdown in tax receipts growth," Investec analyst Philip Shaw said.

The deterioration in the figures came as government spending rose by 8.4% in February compared to a year earlier to £40.4bn, more than offsetting a 5.6% rise in total receipts to £31.2bn.

Mr Brown has predicted that he will meet his "golden rule" that current borrowing and spending should balance over the economic cycle.

However, even if he meets his target in the current cycle - which is due to end in 2008 - analysts have warned taxes will have to rise, or spending be cut, by around £10bn over the next few years to balance the books.

Despite the warnings, most commentators have predicted few changes in Mr Brown's upcoming budget as he paves the way to succeed current prime minister Tony Blair.


Dig deep folks. It's for a worthy cause.

[Fleetwood]

and it's "fair".

[privateeye]

Public sector net borrowing - is that the new term for we need the money to fight an election and give us an unfair advantage.

[zathras]

And According to the Times Yesterday taxes will soon be at their highest level ever.

[Churchill]

<stab><stab><stabbity><stab!!!!>

[Mailman]

Interesting article in the motor times yesterday about people who are cruising truck stops for cheap diesel!

You see, this is the problem for Gordo. Increase taxes and force more people to "protect" themselves from his money grabbing ways. Why would you pay gordo £60 to fill your tank with diesel when you can go to your local truck stop and do the same for less than half the price?

BUT having said that, having a simple and fair tax system isnt in this Governments best interests. They need to keep the tax system complicated simply because it employs a lot of people to run it.

Mailman

[Fungus]

Also worrying were reports in the Sunday Times that business investment is down to record lows. Presumably due to the need to pay the record taxes.

These jammy feckers will stuff the economy, get thrown out while its slowing down, but looks okay to the masses, Tories will take over, economy will screech to a halt, electorate will throw out Tories, and the 'safe hands' of New Lier will take over once more. Am I too cynical?

[Dundeegeorge]

Not too cynical at all

Also worrying were reports in the Sunday Times that business investment is down to record lows. Presumably due to the need to pay the record taxes.

These jammy feckers will stuff the economy, get thrown out while its slowing down, but looks okay to the masses, Tories will take over, economy will screech to a halt, electorate will throw out Tories, and the 'safe hands' of New Lier will take over once more. Am I too cynical?

If the electorate had half a brain or the memory of even a bright goldfish Labour would be laughed out of every election. Sadly first-time voters and the hard-of-thinking keep voting them in, heigh-ho, such is life.

[xoggoth]

Nobody even mentions some of the awful things he has done.

Several years back when this bastard was quite new to the job, he introduced the first huge hikes in fuel duty. A lorry driver I knew at the time said it would be a disaster for the UK road haulage industry. French and other continental drivers would be able to legally fit extra belly tanks, fill up much more cheaply on the continent, and do a round trip to Scotland, undercutting the UK hauliers.

When you drive on motorways today, apart from roadstone and similar short haul stuff, how many large UK registered lorries do you see? Hardly any. The business has been donated to our competitors curtesy of the Bastard Brownstuff.

As a tree-hugger I am all in favour of environmental measures but a move that simply replaces journeys by UK hauliers with longer ones by their competitors made no sense at all.

Brownstuff is the most appallingly awful chancellor ever. He made one really excellent move, to cede control of interest rates to the BOE, and that halted the boom and bust cycles we saw in previous administrations and that's all the public ever see. His impact on business competitiveness and investment and his destruction of incentives in the long run will be far worse.

[Chappo]

if mr brown doesnt meet his economic cycle targets - he will just change the goalposts again - and change the number of months in his cycle...