Monday, 24 November 2008

Budget Disaster

God, what a mess. If the UK wasn't already complete ****ed, it is now.

Absolutely no money given back to us at all. Only a useless VAT reduction which is pointless. A 2.5% drop is ridiculous and will see most retailers just making higher margins. A 2.5% drop in price is almost infinitesimal. I said in yesterday's post that what people need is more money to spend and they therefore will feel more confident about spending. Tiny price drops won't do that.

Let's face it, you wouldn't go near a store that had this in its window;

SALE, 2.5% OFF!

Damn right I won't be either. The retailers will take care of price cuts themselves, an enforced VAT cut will probably cost the bigger companies money, with changes to computer systems and reprinting of catalogues. God, Brown and Darling are buffoons.

Let's not forget all the disastrous borrowing that is going on, nor the possibly extremely detrimental tax increases on the seriously entrepreneurial people in the country. He also hasn't reduced fuel duty and in fact it will continue to go up. I despair. And there are massive tax rises in the pipeline for people who actually earn money to pay for all the pensioners and low income families. I can't believe after 11 years of tax increases that there is more to come and none given back today.

There were no incentives to business either who we all need to survive this so we have a job. Only a delay on an increase in corporation tax. No reduction in tax, no small business loan facility, no removal of stamp duty, nothing.

The market reacted with a 10% increase. A false dawn, and in fact I think they were reacting to the Citibank bailout anyway.

We are going to need another budget with REAL incentives in it early in the New Year.