Alistair Darling plans a workmanlike budget
Alistair Darling has this weekend attempted to stamp out hopes of a giveaway budget at a time when all eyes are on the UK government ahead of the election. There is concern in some quarters that the UK government will again look to tax the rich to help the poor in what would be a highly controversial and highly politicised move.
It is known that Gordon Brown would prefer Alistair Darling to inject hope and optimism into the UK population via the budget and allay fears about the short to medium term financing problems in the UK. However, we will see a number of gimmicks with the proposed 2.5 pence fuel duty increase likely to be deferred and more money handed to the elderly in the UK. These are blatant political activities at a time when in reality the government should be looking at the budget deficit and trying to allay fears in the investment markets.
We are also likely to see an increase in military spending after Gordon Brown was forced to clarify his recent comments regarding the military budget and admit that it had fallen in a number of years under the Labour government. The truth is that finding a balance between a giveaway budget and a sensible budget could be the key to the future of Gordon Brown and the Labour Party.
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