The final canvassing surrounding the UK election takes place today; after three television debates, the unfortunate comments by Gordon Brown and the tactical voting issue, the main political parties realise that a “hung parliament” could be the outcome on Friday morning. The electorate knows that the UK is in financial trouble and that no matter who they vote for there will be public spending cuts, tax increases and possibly benefit reductions. Although some voters have a lifelong allegiance with one party this time around there is no guarantee, but many voters look at the headline policies and think “how will they impact me” and not “what is best for the country”. It is hoped that the turnout will be higher this time with an increase in younger voters but whatever the outcome, there is a long hard climb back for the UK to get out of the national debt hole. Is there an 0800 number we can call?
Tag Archives: tax increases
The best news in the last week for the political parties in the run up to the UK election has been the Icelandic ash cloud that has engulfed most of Northern Europe over the last few days. Apart from causing travel chaos to thousands of people and costing the travel and ancillary industries millions in lost revenues, there have been enormous “green savings” due to reduced carbon emissions.
The Liberal Democrats have benefited the most as the opinion polls seem to show they possibly have potentially a bigger influence in the next Government than expected by the Conservatives or Labour, following the first live UK election television debate. However, the big issues still remain and also the uncertainty of how anyone in power will tackle them, especially as many of these will not be resolved during the next five years.
Whatever the outcome of the election, hung parliament or a majority winner, addressing UK debt, public sector spending cuts, tax increases, health, education, decline of sterling, interest rates and inflation indicates a slow recovery plan over a number of years to bring prosperity back to businesses and consumers.
For those with mortgages or loans last weeks decision by the Bank of England to keep the UK base rate at 0.5% is good news, but for net savers it is now a year of exceptionally low returns with inflation more than cancelling out any interest earned. Indeed, it is also lucky that UK Plc’s debt mountain is only attracting low levels of interest, as the Bank for International Settlements, (BIS), has stated “Interest payments on the UK’s public debt will double from 5% of GDP, (Gross Domestic Product), to 10% within a decade under the bank’s “baseline scenario” before spiraling upwards to 27% by 2040 – by far the highest among the OECD club of developed countries.” With the political parties currently parading their manifestos, none have managed to look beyond the next five years, (the next term of government), but the austerity measures we all will face indicate that their policies will only half the current deficit at best if all the public spending cuts, tax increases and efficiency initiatives deliver. The recession is over………………..?