In a move which is as controversial as it is significant for UK taxpayers, George Osborne has today announced plans to open up the UK treasury's books. In simple terms, around 1 million different spending items and spending programs will be details for public viewing via a user-friendly system which will be available to all.
The British Chambers of Commerce has reiterated a growing concern in the business arena with regards to an ever increasing amount of red tape. It is estimated that red tape cost the UK business arena around £88.3 billion last year, which was a £11 billion increase on the previous year. So what can the new coalition government do?
Today is the day that George Osborne, the new Chancellor of the Exchequer, gets the chance to show what he's made of as he looks to tackle the UK budget deficit. He is set to cut budgets for IT, property, advertising and recruitment although many of the job cuts expected to accompany the £6 billion in spending cuts could come from a recruitment freeze for the civil service.
The UK government is next week set to announce large-scale budget cuts for regional development agencies across the UK. Business Secretary Vince Cable suggested as much in a speech this week amid signs that the current government is not wholly convinced about the benefits attributed to regional development agencies across the country.
The UK budget deficit is more under control than many people had assumed just a few weeks ago and a far cry from the 12% of gross domestic product which is the Greek budget deficit. The UK figure for 2009/10 was in the region of 10% of gross domestic product and while the situation is still very difficult to say the least the UK does not have the worst budget deficit in Europe.
Angela Merkel, the Chancellor of Germany, has been successful in their quest to push through approval of the EU's EUR750 billion bailout scheme. The deal has been approved by Germany's lower house of parliament as has the individual contribution of Germany which is around EUR150 billion. This is a very controversial subject in Germany and the Chancellor has seen significant criticism across the board.
It has been revealed that the UK budget deficit was down by around £11 billion on earlier estimates for the tax year 2009/10. Official data from the UK government shows that the budget deficit for the last financial year was £156.1 billion which is well down on the £167 billion which Alistair Darling had already pencilled in. So has the UK budget deficit turned a corner?
Angela Merkel, the Chancellor of Germany, has today issued a statement calling on all international partners to move towards an international financial tax. Amid signs that investors are losing confidence in the Euro, Angela Merkel believes this would be the perfect opportunity to issue a "signal of strength" to show that the EU is well-financed and well-positioned for the future.
The Audit Commission has today issued a report for the tax year 2008/9 in which cross-referencing of records in areas such as deaths, expired visas, benefits, students and tax returns has identified a loss of public sector finance in the region of £215 million. This money is alleged to have been lost due to error, fraud and overpayments by an array of local governments in the UK at a time when public-sector financing has never been under more scrutiny.
George Osborne has issued a statement regarding corporate tax in the UK and the government's intention to revamp and simplify the system. While this intention to change the corporate taxation system in the UK, which many believe to be over complicated, has been well received there is no word as yet as to when corporate tax rates will fall.
