Government announces downgrade of defence spending
Ahead of tomorrow's spending review the UK government has announced a major cutback in defence spending with a number of large projects impacted and the UK Ministry of Defence under serious pressure. While the suggested cutbacks are perhaps not as large as the press had indicated earlier this week and last week there is no doubt that the government sees defence spending in the future as being more focused upon certain areas as opposed to the Ministry of Defence as a whole.
It is only now becoming clear how many jobs and how many industries actually depend upon the UK defence sector with a number of job losses likely across the UK. There was also the surprising revelation, when a senior minister left classified information laying on the backseat of his ministerial car, but up to 490,000 public sector jobs could be lost in the short to medium term. The UK government will attempt to pass the buck to the previous Labour Party government and the Labour Party will attack each and every spending cut announced tomorrow.
The truth of the matter probably lays somewhere between the two accounts but the truth is that the UK economy is struggling, the government needs to rein in spending immediately and no area of the public sector is wholly immune.
Is a tax on bankers really a tax on society?
As the UK government leads the way with regards to a tax on banking bonuses there are concerns that in reality a tax on bankers is really a tax on society. Despite the fact that bankers will initially take the pain, although many banks have promised to add any taxation liabilities on top of agreed bonuses, it will inevitably flow down the line to customers of the UK banking arena. So is a tax on b...Read More
Alistair Darling and Gordon Brown at loggerheads again
It is reported Alistair Darling has had a number of furious disagreements with Gordon Brown regarding the UK budget deficit and how it should be tackled. It is believed Alistair Darling is in favour of directing income from short-term economic growth in the UK towards tackling the budget deficit, while Gordon Brown seems adamant that growing income should be directed towards investment in public s...Read More
Unions vote for higher taxes for the rich and windfall taxes
Despite the government's pledge that there would be no windfall taxes on the energy companies in the immediate future and tax rates would not be increased to raise more from the rich, delegates at the TUC have voted overwhelmingly for such moves. Will Union power allow these suggestions to see the cold light of day? Or will Gordon Brown be able to broker his way out of this one?
Could a graduate tax system work?
Despite the fact that the UK government has yet to make a final decision with regards to tuition fees and the introduction of the potential graduate tax in the UK, there are grave concerns about the proposed system. There is a feeling that high earners in the UK will be penalised to a greater extent than those on lower incomes and actually end up paying significantly more in graduate tax than the...Read More
Banking tax could yield UK authorities in excess of £2 billion
When Alistair Darling announced the banking tax on bonuses in the UK banking arena it was estimated this one off charge would raise around £500 million for the UK authorities. However, it is becoming more and more obvious that these figures are way off course and the yield from the tax could top £2 billion. While UK banking groups have taken very different attitudes towards this one of bankin...Read More