Was Alistair Darling overruled by Gordon Brown?
There is speculation in the press today that Alistair Darling was overruled by Gordon Brown in relation to his plans to implement a much tougher assault on the UK national debt and the UK budget deficit. It is believed that Alistair Darling was looking towards a potential increase in basic VAT as well as a number of spending cuts, which would both have eaten into the current budget deficit. However, it is believed that Gordon Brown stepped in to demand that investment in the UK economy is maintained as we approach the next general election.
This is the latest blow for the UK government, a blow which shows that the pre-budget report would appear to be more about politics than short-term economics. There are rumours that a compromise was reached which will see the basic national insurance rate increased just after the next election, something which will bring billions upon billions of pounds into the UK government coffers in the short to medium term.
If the Labour government win the next general election there is speculation that Alistair Darling will be replaced as Chancellor of the Exchequer, although many people believe the best the Labour Party can hope for is a hung parliament in which they could play a significant role.
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