Gordon Brown forced to reconsider national insurance rise in 2011
Gordon Brown is tonight under serious pressure from backbenchers to reconsider the 0.5% increase in National Insurance which he intends to implement in 2011. The move is forecast to increase costs to UK business by something in the region of £2.65 billion and severely dent industries ability to bounce back from the ongoing recession. While 2011 may seem some time away, the ongoing UK recession is set to last at least until the end of 2009 and possibly well into 2010. Even then many economists are suggesting more of a gradual increase in economic activity rather than a significant "bounce back".
In all honesty Gordon Brown is stuck between "a rock and a hard place", knowing that he has to increase tax receipts as soon as possible while trying to assist UK businesses in the short to medium term. There is a serious danger of UK plc staring potential bankruptcy in the face unless the massive budget deficit can be reversed and stocks replenished in the short to medium term. Gordon Brown is well aware of this situation and despite repeated attempts to wreck his future plans, it would appear that backbenchers will not get their way this time.
The bottom line is that someone will have to pay for the massive increase in expenditure of late and that someone will be UK businesses and the UK taxpayer.
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