Treasury select committee attacks UK government budget plans
The ever powerful all-party Treasury select committee has today given the UK government a serious slap on the wrist after studying the pre-budget report. As criticism of the UK government continues, more and more MPs are asking for more detail about plans to cut the ever growing budget deficit which now stands at around £175 billion. However, the UK government appears unwilling or unable to step forward with these figures, which is starting to cause confusion and dismay in investment and money markets.
There is no doubt that continuing uncertainty surrounding the finances of the UK is affecting not only the economy but the currency as well. It is obvious that Gordon Brown and the Labour Party are withholding details of significant tax rises and significant public sector investment cuts purely and simply to curry favour with voters in the short term. While they are not the first government to use this particular strategy, there is no doubt that more and more voters are starting to see through the thin veil of secrecy.
We are also hearing noises of concerns about Gordon Brown's leadership from within the Labour Party with the potential for a leadership challenge even at this late stage. Whether this emerges or not is academic as it is already causing major damage to the reputation and the support of the Labour Party.
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