Is the UK budget deficit under control?
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.
When you also take into account David Cameron's target of saving £6 billion in public sector spending this year there is perhaps hope for the future. The UK economy is in a very different situation to that of Spain, Portugal and Ireland for example which are all under pressure from the European Union to reduce their deficits as part of a plan to protect the Euro. The UK has refused so far to join the Euro and while it would be wrong to say there has been no pressure from the EU, it's been nowhere near the level experienced by the likes of Greece, Spain, Portugal and Ireland.
Only a few weeks ago the UK was being ridiculed by many EU partners with regards to the growing budget deficit but since then there has been more positive news in the UK and more negative news in Europe.
Share this..
Related stories
Lib Dems announce 4p tax cut plans
The Liberal Democrats have said that they would slash the basic rate of income tax by four pence if they were elected to form a government.Unveiling the proposals the party stressed that the tax cut aimed at low and middle income earners would be paid for by fiscally targeting the rich and those with "environmentally damaging lifestyles".Plans to cut income tax from 20p to 16p will take the basic...
Read MoreWill UK banks need further bailout funds?
While we saw the UK banking sector literary teetering on the brink of collapse only a few months ago, it would appear that despite progress over the last few months there is still a long way to go and the sector is in no way out of the woods yet. The situation regarding Lloyds bank and Royal Bank of Scotland, both of which are under investigation by the EU and looking to raise additional funds, is...
Read MoreUK government refuses charity bailout
With confirmation that UK charities lost around £120 million in the recent Icelandic banking collapse the sector was hit again today when the UK Treasury refused a bailout for those in trouble. Citing the fact that other "not-for-profit organisations" such as police authorities, local councils and universities would have to wait in line for compensation from the Icelandic government, the UK autho...
Read MoreNew council tax band hikes for 465,000 homes
A local government review published yesterday proposed the introduction of two new bands of council tax, G2 and H, which would mainly affect more expensive properties in London and southern England.The review advised that properties worth more than £545,000 would in future fall into band G2, and would face an annual tax of £2,500 - affecting about 460,000 homes in total.The proposed H band would...
Read MoreWill David Cameron's gamble pay off?
As we covered in one of our earlier post, Tory leader David Cameron has today suggested he would scrap the 50p top tax rate if it was shown to bring in no money for the UK government. While this is almost certainly a major gamble by David Cameron to show that he is both pragmatic and realistic about the UK tax system it could well play into the hands of the Labour Party as we approach the general...
Read More