web analytics

British austerity budget

Written By: - Date published: 6:55 am, June 24th, 2010 - 28 comments
Categories: capitalism, class war, uk politics - Tags: , ,

The first budget from the new Tory-LibDem government is a shocker:

Budget 2010: Pain now, more pain later in austerity plan

• George Osborne delivers £40bn austerity budget
• Controversial rise in VAT to 20% from January

George Osborne has imposed austerity measures on every family in Britain after announcing a £40bn package of emergency tax increases, welfare cuts and Whitehall spending restraint designed to slash the budget deficit by the end of the parliament.

The chancellor said the “unavoidable budget” required a VAT rise from 17.5% to 20% next January, higher capital gains tax, a levy on banks, a two-year public sector pay freeze and less generous benefits, but insisted the package was needed to prevent the financial markets from turning on Britain.

In his debut budget speech, Osborne pleased the ratings agencies and the Organisation for Economic Co-operation and Development by intensifying the £73bn squeeze already planned by the last Labour government. But he signalled a second dose of gloom in October, when a three-year comprehensive spending review will spell out the size of the cuts for individual government departments.

Osborne warned today that ring-fencing the NHS and international development meant non-protected departments would face average real cuts of 25% but that some clemency would be shown to education and defence. …

Seeking to pin the blame for the tough measures on Gordon Brown, the chancellor said: “Today we have paid the debts of a failed past. And laid the foundations for a more prosperous future. The richest paying the most and the vulnerable protected. That is our approach. Prosperity for all. That is our goal.” …

But figures produced by the Treasury purporting to show the richest will suffer most extend only to 2012-3, by which time most of the welfare cuts will not have been implemented. …

Right wing commentators everywhere will be dribbling into their keyboards about “years of incompetent Labour rule” – politics as usual. What this is really about is three things, England’s over reliance on the financial services “industry”, the failure of unregulated capitalism, and the one stupid decision that financial institutions were “too big to fail”. England committed £850 billion to bail out big banks (while around 5000 executives paid themselves bonuses up to £15 million each). Much of the bill was always going to end up shafting the ordinary people. And here’s the first instalment.

28 comments on “British austerity budget ”

  1. WOOF 1

    They are a pack of mongrels!

  2. WOOF 2

    What a pack of mongrels!

  3. Bored 3

    The major tenet I took from this budget was the terror the debt mountain is beginning to have around Europe. The attempt to place the burden of debt upon the taxpayer may yield interesting results however, as the increase in VAT appears to make sure it is done at the expense of consumption as opposed to income. It would seem contradictory to cut expenditure in the public sector by 25% (thats the plan), cut benefits and services, and to then expect the people affected to have money to consume and thereby generate tax revenue.

    Overall what we are looking at is the terror of a post industrial economy, long used to income from overseas investments as a replacement to local production seeing the income dry up, and not having any productive capacity left to pay the bills. The Con / Libs with the same tired market mantra dressed up as a socially and economically responsible budget are dancing on the grave of the post war social consensus. How this plays out will be very instructive to societies like ourselves who have exported their own productive capacity and propped up the social consensus on future debt.

  4. luva 4

    Need to change the title of this thoughtful post. It is not England, this is the British government and they have jurisdiction (at least in respect of revenue) over England, Northern Ireland, Scotland and Wales.

    Calling this an English budget is a bit like calling Rudd the PM of New South Wales or the by midday the former PM of NSW.

  5. Gosman 5

    You should be positively jumping for joy at this then. The imminent collapse of the free-market capitalist system will allow the implementation of the socialist utopia.

    I can’t wait for the British Labour Party to start advocating for the nationalisation of the means of production once again.

    • Bored 5.1

      They would if there was any means of production left! Bit like here, its all made in China.

    • Now that would really be something.,If this British budget has the effect we people of the Left believe well the ideas of State Ownership of the monopolies will once again be part of the thinking in Aotearoa . However we have to get rid of this lot in power at this time.

  6. Bunji 6

    It’s a huge budget with so so many changes, but there seems very little comment on the fact that they’ve lowered corporation & small company tax rates at the same time. For all their “we’re all in this together” talk, business gets a free ride. The Libs might have got their rise in the tax free allowance, but it seems a very Tory business friendly budget…
    Education budget cut by 25% – ouch. All civil service other than health takes 25% cut – unemployment at 3 million and a double-dip recession seems to be in the offing for the poor old UK.

  7. Nick C 7

    I think the reason this is nessesary is quite simple: The last Labour government decided to spend more than it earned, putting the country in debt.

    Part of that was the bailout i agree. Another part was the massive welfare spending.

    • RedLogix 7.1

      When will the right learn that robbing the poor box is not a substitute for economic policy?

    • lprent 7.2

      Most of it was from a premature ejaculation of tax cuts. Just about the worst type of fiscal stimulus there is.

  8. john 8

    http://www.socialistworker.co.uk/art.php?id=21633

    Above link gives the viewpoint of Workers on this budget which has marked similarities to the one recently given by the key regime

  9. comedy 9

    Is it true that they’re borrowing over 150 bn pounds this year and public sector net debt is to go up to around 75% of GDP ?

    Sounds like they are on the precipice of being truly fucked and must have been pissing money up against the wall for a long time during the boom times.

    • RedLogix 9.1

      Sounds like they are on the precipice of being truly fucked and must have been pissing money up against the wall for a long time during the boom times.

      Well yes. Here in NZ it’s private debt, at around NZ$190b, that totally dominates our Debt to GDP ratio…so yes we’ve been pissing money up against walls too, but possibly not in the way you have in mind.

  10. The Lib/Deb supporters must be devastated! Just as the Maori Party voters may be.
    Unfortunatly when what should be a Left-Wing party supports the Right the Right use their majority and just ride roughshod over them . the lesson for us in the British Budget is that this is what Tories do or hope to do.There is a lesson for both our LP party , the Maori Party and the Greens “the enemy are the Tories ‘, let us all remember that fact and co-operate together .

  11. Draco T Bastard 11

    What this is really about is three things, England’s over reliance on the financial services “industry’, the failure of unregulated capitalism, and the one stupid decision that financial institutions were “too big to fail’.

    All of which was set up by RWNJ governments around the world – Thatcherism, Reaganism, and Rogernomics here. We paid for it in the 1990s as we went into recession with wages stagnating, prices rising and the selling off of state assets that had an income and we’re still paying for it. Our present RWNJ government wants us to pay even more so that they and their rich mates can get richer.

  12. Fred 12

    British public debt is now rising by £3 billion a week

    This should be a cause for some fairly major concern

    • Fred 12.1

      and I do agree about the sentiments about the bankers bonuses. Bankers are up there with politicians as lying cheating thieving shits in the UK.

      This is the default position now.,

  13. Jenny 13

    They say that every budget deserves a name that goes into the common lexicon.

    To start the debate, I would like to suggest:

    “The Zimbabwe Budget”,

    “The Mugabe Solution”,

    “The Insulate the Elite and Sack the Country Budget”,

    “The Next National Party Budget”

  14. millsy 14

    Personally I would rather a country be in debt that throw its most vulnerable people out on the street or let them die on emergency room due to underfunding of health.

    Its a matter of choices.

    The story about the New Zealand lady who lived in the bushes for 10 years in Hawaii really hit home for me. Why in hell would a country leave an eldeley woman live in the bush homeless for 10 years. But I suppose for many that is the price of ‘prosperity;.

    As for Cameron’s cuts, there is nothing that wouldnt have been done by Labour under Blair, but still, the British people are going to have to put up with crumbling roads, homlessness, run down infrastructure and people not being able to get health care for a long while let

    • equality watcher 14.1

      I vaguely remember in the 90s an old lady living in some park in New Zealand who was murdered.

  15. john 15

    The other Major factor in the UK’s economic woes is the decline in oil from the North Sea, they now import oil once again. It was North Sea Oil which boosted their economy for 25 years, where for awhile Brits seemed the rich people of Europe going over to France, Spain, Italy and doing up old properties and commuting between both Countries. Thatcher deindustrialised the UK, it was the oil bonanza which kept the whole show working ,now it’s going going gone the rich will have to use their positions to hold onto what they have got meaning regressive taxation such as VAT.
    http://www.socialistworker.co.uk/art.php?id=21633
    Most Brits I have met prefer here, a much simpler lifestyle without the rat race they have over there.

Links to post

Recent Comments

Recent Posts

  • Environment Court Judge appointed
    Prudence Steven QC, barrister of Christchurch has been appointed as an Environment Judge and District Court Judge to serve in Christchurch, Attorney-General David Parker announced today. Ms Steven has been a barrister sole since 2008, practising in resource management and local government / public law.    She was appointed a Queen’s ...
    BeehiveBy beehive.govt.nz
    42 mins ago
  • Government moves on climate promises
    The Government is delivering on its first tranche of election promises to take action on climate change with a raft of measures that will help meet New Zealand’s 2050 carbon neutral target, create new jobs and boost innovation. “This will be an ongoing area of action but we are moving ...
    BeehiveBy beehive.govt.nz
    4 hours ago
  • Jump starting research careers
    The Government is investing up to $10 million to support 30 of the country’s top early-career researchers to develop their research skills. “The pandemic has had widespread impacts across the science system, including the research workforce. After completing their PhD, researchers often travel overseas to gain experience but in the ...
    BeehiveBy beehive.govt.nz
    5 hours ago
  • Project protects jobs and nature
    A Waitomo-based Jobs for Nature project will keep up to ten people employed in the village as the tourism sector recovers post Covid-19 Conservation Minister Kiri Allan says. “This $500,000 project will save ten local jobs by deploying workers from Discover Waitomo into nature-based jobs. They will be undertaking local ...
    BeehiveBy beehive.govt.nz
    24 hours ago
  • Minister Shaw speaks with U.S. Presidential Envoy John Kerry
    Minister for Climate Change, James Shaw spoke yesterday with President Biden’s Special Presidential Envoy for Climate John Kerry. “I was delighted to have the opportunity to speak with Mr. Kerry this morning about the urgency with which our governments must confront the climate emergency. I am grateful to him and ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Minister of Foreign Affairs makes three diplomatic appointments
    Foreign Affairs Minister Hon Nanaia Mahuta today announced three diplomatic appointments: Alana Hudson as Ambassador to Poland John Riley as Consul-General to Hong Kong Stephen Wong as Consul-General to Shanghai   Poland “New Zealand’s relationship with Poland is built on enduring personal, economic and historical connections. Poland is also an important ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Major redevelopment of Wainuiomata High School underway
    Work begins today at Wainuiomata High School to ensure buildings and teaching spaces are fit for purpose, Education Minister Chris Hipkins says. The Minister joined principal Janette Melrose and board chair Lynda Koia to kick off demolition for the project, which is worth close to $40 million, as the site ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New expert group appointed to advise Government on Oranga Tamariki
    A skilled and experienced group of people have been named as the newly established Oranga Tamariki Ministerial Advisory Board by Children’s Minister Kelvin Davis today. The Board will provide independent advice and assurance to the Minister for Children across three key areas of Oranga Tamariki: relationships with families, whānau, and ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • COVID-19 vaccine slated for possible approval next week
    The green light for New Zealand’s first COVID-19 vaccine could be granted in just over a week, Prime Minister Jacinda Ardern said today. “We’re making swift progress towards vaccinating New Zealanders against the virus, but we’re also absolutely committed to ensuring the vaccines are safe and effective,” Jacinda Ardern said. ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New ACC Board members announced.
    The Minister for ACC is pleased to announce the appointment of three new members to join the Board of ACC on 1 February 2021. “All three bring diverse skills and experience to provide strong governance oversight to lead the direction of ACC” said Hon Carmel Sepuloni. Bella Takiari-Brame from Hamilton ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Economic boost for Southland marae
    The Government is investing $9 million to upgrade a significant community facility in Invercargill, creating economic stimulus and jobs, Infrastructure Minister Grant Robertson and Te Tai Tonga MP Rino Tirikatene have announced.  The grant for Waihōpai Rūnaka Inc to make improvements to Murihiku Marae comes from the $3 billion set ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Celebrating the Entry Into Force of the Treaty on the Prohibition of Nuclear Weapons
    [Opening comments, welcome and thank you to Auckland University etc] It is a great pleasure to be here this afternoon to celebrate such an historic occasion - the entry into force of the Treaty on the Prohibition of Nuclear Weapons. This is a moment many feared would never come, but ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Supporting disabled people to stay connected
    The Government is providing $3 million in one-off seed funding to help disabled people around New Zealand stay connected and access support in their communities, Minister for Disability Issues, Carmel Sepuloni announced today. The funding will allow disability service providers to develop digital and community-based solutions over the next two ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Voluntary saliva testing offered to quarantine workers from Monday
    Border workers in quarantine facilities will be offered voluntary daily COVID-19 saliva tests in addition to their regular weekly testing, COVID-19 Response Minister Chris Hipkins said today. This additional option will be rolled out at the Jet Park Quarantine facility in Auckland starting on Monday 25 January, and then to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Next steps in firearms buy-back
    The next steps in the Government’s ambitious firearms reform programme to include a three-month buy-back have been announced by Police Minister Poto Williams today.  “The last buy-back and amnesty was unprecedented for New Zealand and was successful in collecting 60,297 firearms, modifying a further 5,630 firearms, and collecting 299,837 prohibited ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Jobs for Nature projects target iconic ecosystems
    Upscaling work already underway to restore two iconic ecosystems will deliver jobs and a lasting legacy, Conservation Minister Kiri Allan says.  “The Jobs for Nature programme provides $1.25 billion over four years to offer employment opportunities for people whose livelihoods have been impacted by the COVID-19 recession. “Two new projects ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Public Housing Plan announced
    The Government has released its Public Housing Plan 2021-2024 which outlines the intention of where 8,000 additional public and transitional housing places announced in Budget 2020, will go. “The Government is committed to continuing its public house build programme at pace and scale. The extra 8,000 homes – 6000 public ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Prime Minister congratulates President Joe Biden on his inauguration
    Prime Minister Jacinda Ardern has congratulated President Joe Biden on his inauguration as the 46th President of the United States of America. “I look forward to building a close relationship with President Biden and working with him on issues that matter to both our countries,” Jacinda Ardern said. “New Zealand ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Jobs for Nature funding will create training and employment opportunities
    A major investment to tackle wilding pines in Mt Richmond will create jobs and help protect the area’s unique ecosystems, Biosecurity Minister Damien O’Connor says. The Mt Richmond Forest Park has unique ecosystems developed on mineral-rich geology, including taonga plant species found nowhere else in the country. “These special plant ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Pre-departure testing extended to all passengers to New Zealand
    To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. “The change will come into force for all flights arriving in New Zealand after 11:59pm (NZT) on Monday ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Bay Cadets learn skills to protect environment
    Bay Conservation Cadets launched with first intake Supported with $3.5 million grant Part of $1.245b Jobs for Nature programme to accelerate recover from Covid Cadets will learn skills to protect and enhance environment Environment Minister David Parker today welcomed the first intake of cadets at the launch of the Bay ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Cook Islanders to resume travel to New Zealand
    The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such as health. “Following confirmation of the Cook Islands’ COVID ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Supporting communities and landowners to grow employment opportunities
    Jobs for Nature funding is being made available to conservation groups and landowners to employ staff and contractors in a move aimed at boosting local biodiversity-focused projects, Conservation Minister Kiritapu Allan has announced. It is estimated some 400-plus jobs will be created with employment opportunities in ecology, restoration, trapping, ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Border exception for some returning international tertiary students
    The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began. The exception will allow students to return to New Zealand in stages from April 2021. “Our top priority continues ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Tiwai deal gives time for managed transition
    Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New member for APEC Business Advisory Council
    Prime Minister Jacinda Ardern has appointed Anna Curzon to the APEC Business Advisory Council (ABAC). The leader of each APEC economy appoints three private sector representatives to ABAC. ABAC provides advice to leaders annually on business priorities. “ABAC helps ensure that APEC’s work programme is informed by business community perspectives ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Govt’s careful economic management recognised
    The Government’s prudent fiscal management and strong policy programme in the face of the COVID-19 global pandemic have been acknowledged by the credit rating agency Fitch. Fitch has today affirmed New Zealand’s local currency rating at AA+ with a stable outlook and foreign currency rating at AA with a positive ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Additional actions to keep COVID-19 out of NZ
    The Government is putting in place a suite of additional actions to protect New Zealand from COVID-19, including new emerging variants, COVID-19 Response Minister Chris Hipkins said today. “Given the high rates of infection in many countries and evidence of the global spread of more transmissible variants, it’s clear that ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • 19 projects will clean up and protect waterways
    $36 million of Government funding alongside councils and others for 19 projects Investment will clean up and protect waterways and create local jobs Boots on the ground expected in Q2 of 2021 Funding part of the Jobs for Nature policy package A package of 19 projects will help clean up ...
    BeehiveBy beehive.govt.nz
    3 weeks ago