The 2014 budget has to be looked at, as all budgets do in the context of the overall economic position of the Country. The situation is still extremely difficult but it is better than it was four years ago.
The scale of the problem is demonstrated by the fact that even though the Government has reduced the annual deficit by a third the Country is still having to borrow an estimated £109billion this year just to pay the bills. No individual, no business, no organisation can continue for long paying out more than it gets in.
Fortunately, the economy is growing again. The latest forecast from the Independent Office of Budget Responsibility is that the economy will grow by 2.7% in the current year.
The reason why all this is important is that it is only because the Conservatives have a long-term economic plan which is making it possible to help savers. pensioners and families. In the long-term it is for the benefit of our children and grandchildren that we get the nations finances in order so we don’t pass the debts we have built up on to them.
3 thoughts on “Budget 2014 Background”
Understand what you are saying – in laymans terms the country is continuing to take out a fresh credit card every DAY to repay the card it took out the day before and the interest is increasing day on day. Pity there aren’t any pay day loan companies about big enough! Then we’d really be screwed properly!!
I have a daughter in BURY that has managed to set up and start a business that employs 4 full timers and 5 part timers. They have worked 16hr days for 18months, it has shattered them and in some respect changed their lives for ever. They have taken bugger all in terms of pay, you dozey lot (politicians) should be forced to run your own businesses FIRST before you sit pontificating how the country should be run. Luckily they could use their own funds because you try talking to a Bank about assistance (HA). The only concession they got from the council was 6 months stay of execution before the business rates kicked in – £900 a MONTH. To empty the bins! The greedy buggers. All you lot (the bureaucrats) do is create rules that stop people getting a business started. Pages and pages of twaddle.
Your “growth” is based on the South East’s expanding housing bubble and insurance/banks who are repaying payment protection insurance compensation. As a digression why can’t I afford a new car (having worked for 40 years) when 630,000 people get there’s replaced every 3 years coz they have a disability – Still it keeps the car market moving — I don’t see that many wheel chairs (bit simplistic but can appreciate the really incapacitated need such assistance) Get Mr Duncan Smith to sort that one out.
By the way let Mr Davey know that if you ‘switch’ suppliers for gas and electric it doesn’t make a blind bit of difference to your monthly outgoings – the utility suppliers winter weight your monthly payment – so you have to beg them for your money back when you zoom into credit in the summer. It’ll not bother you we pay your bills. Ahh well bring on Mr Farage at least we know he’s fired up.
1) The size of the economy is nearly back to pre-recession levels, we have had four years of spending cuts and increased taxes yet we are still borrowing £70 billion p.a more than the pre-recession deficit. Why is this?
2) The avowed aim of austerity was to rebalance the economy away from government spending and consumer debt driven growth to exports and business investment. Is there any evidence of this happening?
3) What you seem to be offering our children is un-affordable housing, underemployment, massive student debts and a dying planet. Apart from the hope of a tax free cut of their grandparents estate (probably when they are in the fourties already) what are Conservatives offering children
Please can you explain point 1 in particular, as it really is a head scratcher for me.
Basically it is because for all the talk of cuts overall Government spending continues to increase. This is partly because of the fact that as every year goes by with a deficit the total of the annual deficit gets added to the nations debt pile and consequently the interest on the debt increases which then increases spending the next year. As you know the Government is also increase spending on the NHS and has protected the International Aid budget. Spending on other very large items such as pensions also continues to increase because of the ageing population.
There is actually plenty of evidence of exports growing and businesses investing in the UK. today there is news that Siemens are investing in anew manufacturing plant on Humberside.
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