November 28th, 2011

Grow Faster, Go Further

Growth is anaemic, that much of the Balls critique is true, the cause is not the government’s spending cuts, they are a mere 1% of GDP. Osborne has made mistakes, hiking VAT hit the High Street by taking money out of the real economy whereas QE at the moment only puts money into high finance money markets. Back in June the IMF issued a report recommending

“…tax cuts are faster to implement and more credibly temporary than expenditure shifts and should be targeted to investment, low-income households, or job creation to increase their multipliers… Simultaneous adoption of deeper long-run entitlement reform would be desirable to safeguard fiscal sustainability and market confidence…”

It also pointed out that

“The level of public spending as a percentage of GDP in our forecast has reduced by about half a per cent of GDP as compared to the previous fiscal year. However, it remains very far above the pre-crisis levels of spending and represents a long-term high in spending. It’s important to maintain that perspective”

Plan B, the Balls plan for bankruptcy and bond market collapse, is for higher taxes and more spending, this can be dismissed. Osborne is right when he says the international bond markets would crucify Britain if he switched to Plan B, for as Jeff Randall points out this morning

“At the moment, the Chancellor is pulling off a brilliant confidence trick: persuading the markets that Britain remains a triple-A credit, able to borrow on the same terms as Germany, while managing an economy with an inflation rate 66% higher than the eurozone’s average, and a national debt that is forecast to hit £1.32 trillion in 2015, nearly 40% greater than today.”

Tricky. Gordon Brown inherited an economy in a sweet spot and left an economy drowning in debt, Osborne believes he must bear down on the deficit to keep the confidence of the bond markets. Yet a paper produced by Dr Tim Morgan of bond brokers Tullett Prebon argues that if the government is going to miss its deficit reduction target anyway, what option would placate the bond markets more?

  1. “Britain has missed its deficit target because growth hasn’t happened”
  2. “Britain has missed its deficit target because the government failed to cut spending sufficiently”
  3. “Britain has missed its deficit target because taxes have been cut in pursuit of growth”

We’re currently in the first situation, the second situation is unpalatable to the government, the LibDems don’t have the stomach for a shock doctrine style short term austerity programme. Balls advocates stimulus in the form of higher spending, no one in government is advocating the alternative, which is to stimulate the economy by cutting taxes instead. Of course if we also rolled back government spending there would be more room for tax cuts to boost consumer confidence and the economy, without matching spending cuts the deficit will rise. Osborne is going to miss his deficit target regardless of which option he takes, it wouldn’t scare the bond market so much if cut taxes in pursuit of growth…


256 Comments

  1. 1
    Billy Bowden is the greatest umpire ever ! says:

    If he cut further and faster we would get a shorter and sharping hit, but better for long term.

    Man up Osborne!

    Like

    • 3
      Lord Justice Leveson says:

      I declare this blog SHUT.

      Like

      • 15
        Engineer says:

        I declare it open again. Now bog off.

        Like

        • 22
          will the last person to leave this blog please pull the chain? says:

          …and squirt some Harpic around the bowl. Don’t forget to do under the rim.

          Like

          • Grumpy Old Man says:

            Labour lost. Get over it.

            Like

          • Mrs Merkel says:

            For you, Engländer, ze house prices are over.

            Hahahahahhaha.

            Like

          • Dave says:

            Look, plebs, we’re still in this together. We all love bombing and holocausting millions of m uzzies in the phony war on t error, as Izzy’s poodle, and Gideon is doing his damndest to make sure £10m+ properties in London continue to rise at more than 10% p.a for foreign criminals on the run!

            Like

          • will the last person to leave this blog please pull the chain? says:

            I couldn’t have been happier that Labour lost.

            Like

          • Rage Against the Political Elite says:

            Its like giving the local burglar the keys for your home, when you are on holiday. These F–KERS caused the problem in the first place. Raising Soverign debt to fight the unwinnable Phoney Drug War, and the invasion of Afghanistan and IRAQ outside of the international aggreements on WAR.
            The International laws are in place to STOP, Wa–ers like BUSH and BLIAR from ruining their countries.
            We need the RULE of LAW NOW, and execute the economic terrorists who are Fu-king the economy.

            Like

          • Rage Against the Political Elite says:

            Dont Ask a politician to Lie too you as they will tell us this is PEACE TIME DEFICIT, Now you know they are lying.

            Like

          • Our Denry says:

            Thay’s what they do, because they are politicians, they have a degree in it, double first from Oxbridge, it is also rife in business all the dodgy dealings that have been going on in the past 30 odd years highly paid “because they deserve it”.

            Like

          • Rage Against the Political Elite says:

            They are all the same Greedy Grasping, Same Selfish bast–ds. I could never work out why Stalin executed all of the academics and business leaders, politicians. I DO NOW.

            Like

      • 20
        God says:

        Pompous Ass!

        Like

      • 30
        Lord Justice Levi501 - £80 ea. 2 for £200. says:

        nearly. SHIT.

        Like

      • 52
        Selohesra says:

        Leveson the establishment judge
        Reviewed claims of those with a grudge
        He said celebs should be free
        To shag secretly
        Or to stuff up their bottoms with fudge

        Like

    • 119
      Anonymous says:

      Osborne is going to have similar plan as Darling. Only difference according to the government is its balance sheet funding. Spending is spending it all come from debt.

      Issue is whether this plan works.

      Like

  2. 2
    Billy Bowden is the greatest umpire ever ! says:

    Guido, dont know if you have seen this?

    Like

    • 19
      Billy Bowden is the greatest umpire ever ! says:

      http://bit.ly/t0F5WP

      I wonder if Leveson would say this about Hugh Grant or the Mcanns?

      Like

      • 47
        Ewanme says:

        Hiya , Billy Botty x .

        If I woz to tell ya that the vast majority of normal humans couldn’t givva flyin fuck bout any of this , would you be upset darlin ??

        E x .

        Like

      • 49
        Rat's arse says:

        Hi Billy. I hope Guido gives both barrels at the Leveson enquiry. So far the enquiry has been a platform for has-been ‘celebrities’, trying to kick start their miserable careers, and as for thr McCanns…..
        well, they didn’t mind all the publicity, just as long as none of their failings were bought to light.

        Like

      • 57
        MrAngry61 says:

        Good luck trying to force Guido to take the link down – if Schillings couldn’t then Leveson probably won’t. Besides, Campbell’s statement is now in the public domain – what would be gained by banning it on just one site?

        Like

      • 80
        Selohesra says:

        At least Chris Jeffries has got his hair cut by the look of things and now looks almost normal – if he hadn’t looked such a wierdo the press wouldn’t have jumped to the conclusion that he was the killer. Who can honestly put their hands up and say they did not think along the same lines as the press the moment they saw him on the news?

        Like

        • 93
          It's not just the tabloids says:

          Me. I honestly thought He ain’t done it. That was because he looked like an eccentric weirdo and the press and police would think he done it because he was an eccentric weirdo.

          And it wasn’t just the papers, the TV news were reporting as if he’d done it and the police were leaking behind the scenes to the MSM that he’d done it. In fact the Plod do this all the time to try and get more evidence and it’s wrong wrong wrong. The WHOLE system is corrupt.

          Like

          • John Bercowitz says:

            I just hacked “Rose West” Leveson’s voice mail and his Rabbi told him to……………………………….Guido Fawkes.

            Like

        • 139
          Richard Jewell says:

          Me, for one…

          Like

          • Selohesra says:

            I think you are the second actually – perhaps it was just me though with cynicisnm sensors dulled by too much festive cheer

            Like

      • 89
        Cuddle Cat says:

        I know what happened!

        Like

      • 124
        Reaching a verdict before hearing the evidence says:

        Im reminded of that episode of Blackadder where the trial judge played by Stephen Fry calls for his black cap at the start of the trial with the comment “I’ll need this for later”.

        Like

    • 138

      Leveson is an oxygen thief.

      Like

    • 142
      Joe says:

      Has the Leveson heard of the presumption of innocence?

      Like

      • 174
        jgm2 says:

        Presumption of innocence was abolished by Jack Straw. Along with double jeopardy and habeas corpus.

        And then they couldn’t understand why there wasn’t a big rush for ‘voluntary’ ID cards. C*unts.

        Like

  3. 4
    Ah! Monika says:

    Working well this morning Guido. Obviously not following the enquiry

    Like

    • 29
      Spin Cycle says:

      He’s trying to make the Blog look all serious and workmanlike.

      Like

      • 235
        The name is Cock, Handycock says:

        Well here’s good reason to show that it is not serious and workmanlike. Having a lovely time in Russia, weather not too good but not really bothered about that. Hotel and female company of the highest standards as usual. Boaz.

        Like

        • 237
          Manager People's Orphanage, Moscow says:

          Will someone please stop this Pervert coming to my orphanage offering his services as a volunteer. We have enough volunteer workers, and this one shows an unhealthy interest in the young girls. Can anyone provide any information on this Englishman, he seems highly suspect to us?

          Like

          • Manager Orphanage, Bucharest says:

            We had the same trouble in our orphanage with him, and now we are looking after lots of his progeny. Our advice is keep him out.

            Like

  4. 5
    a non says:

    Old Holborns twitter page currently repe ating Guido’s exposé for those who missed it.

    Like

  5. 6
    Dwayne Dibley Ed says:

    Whath our position Mr Ballth, what do our Union masthters think? Do I thupport a stwike in tough times? Help!

    Time for some fuzzy thinking and a nose job.

    Like

  6. 7
    cuts please says:

    18 months of fannying around. When’s he going to start doing the job the country needs?

    Like

  7. 8
    Mornington Crescent says:

    Agreed.

    The principle of these Enterprise Zones is a good one: low tax, low regulation. If it’s good enough for these ‘zones’, it’s good enough for the whole of the country.

    PS: time for an online ad for popcorn on here, Fawkes – just in time for Wednesday.

    Like

    • 51
      Anon says:

      Bingo. Cut regulation.

      How many tens of billions of pounds are sucked out of the economy by government (mainly EU) regulation? Doesn’t Health and Safety alone account for more than £14billion sucked out of the economy each and every year?

      Scrap all that, and without any additional spending or any tax cuts or any increase in debt, there are tens of billions of pounds more sloshing around the economy.

      Like

      • 103
        Time to Emigrate says:

        Have you thought about living in the regulation and government free country of Somalia? Lovely beaches.

        Like

        • 149
          Funny That says:

          Err, try and compare apples with apples.

          Somalia is a backward, tribal shithole, has always been a backward, tribal shithole and will always be a backward, tribal shithole, because it is populated by mentally sub-normal, backward, tribalist shitheads.

          Like

          • Our Denry says:

            The UK is heading that way all money will be disappearing into a black hole called London, it is claiming all monies, rapidly spinning all that is within the vicinity will be absorbednever to be seen again. The higher unemployment is getting nearer and nearer to London, far nearer than in the 1980’s money dealers will panick and move to India and China anyone fancy a job in Mumbai or Beijing, wages are much cheaper.

            Like

          • Our Denry says:

            Well there is the London Olympic Games that will bring a lot of money in, that is revenue, but cost is £Billions + the cost of business lost because of the games, cost exceeds revenue, just like the UK economy

            Like

          • joescotus says:

            that might be racist…. its inconveniently for some true

            Like

        • 154
          Tuscan Tony says:

          The proximate cause for Somalia’s failure is not its relative lack of regulation. If it was, Basel would look like Darfur.

          Like

  8. 9
    Up sh1t creek says:

    Ed Balls-up Plan B for bankruptcy.

    Like

    • 116
      Fuck the Debt the children can pay it off says:

      Spend spend spend!

      Like

    • 146
      Nurse Ratched says:

      Another one that often misses his medication.

      Come on Mr B. Take your pills or you won’t get to play with the monopoly money this afternoon.

      Like

    • 181
      jgm2 says:

      Ahhh, just like the good old days. Phone up Andrew Marr and he’ll let you spout any old bollocks unchallenged which will then be reported as ‘news’ throughout the day.

      Cameron should get Marr fired as a matter of priority. The fucker was one of Labours main BBC enablers during the imbecility.

      Like

    • 230
      50 Calibre says:

      I could really enjoy knocking the smile off this silly bastard’s ugly face with a large baseball bat to ensure non-recovery.

      Like

  9. 10
    Waupoos says:

    Tax cuts and a flatter tax structure (i.e. less “progressive”), complimented by cuts in government spending to offset these – net neutral impact. Meanwhile, better tax collection would help, both in terms of the revenue base but also in the perception of “fairness” among citizens.

    There are ways to appear both fair but tough and allow for a stronger economic rebound when it happens.

    Like

  10. 11
    Steve Miliband says:

    The ‘Labour Boom’ was financed by re-mortgaging over valued properties. People are now paying off debts and have less disposable income and therefore consumption down and no growth. We have been in recession since 2008.

    When people start spending again we will be buying imported goods and employing more Europeans.

    Apart from that it hasn’t snowed yet

    Like

    • 151
      t says:

      So much of our economy has become dependent on increasing consumption, it won’t be long until the mass employer is in the production of what we ‘need’ to consume, rather than what we ‘want’ to consume, ensuring sustainable employment and reduce costs of imports.

      Thatcher’s grand-children will mostly be working in agriculture and food productio.

      Back to the future, the post-industrial age!

      Like

    • 184
      jgm2 says:

      We have been in recession since 2008

      Absent Labour’s deficit spending we’ve been in recession since 2002.

      Like

  11. 12
    Engineer says:

    The other big problem Osborne has is that he can’t predict with any confidence what will happen with the Euro, or when (except that it’ll be a negative influence on the UK’s economy). He could take stimulus measures which in almost any other circumstances would work, but which could in this case be swamped by fallout from a Euro collapse or reorganisation, thus leaving us worse off.

    Talk about being between a rock and a hard place….

    Like

    • 17
      Up sh1t creek says:

      At least De La Rue will be in the money… literally, as it prints new bank notes to replace the Euro.

      Like

      • 39
        Engineer says:

        Ben Brogan reported in the DT late last week that contingency planning has started in the FCO and Treasury in case the Euro collapses. Bit late in the day, you’d have thought – some ‘what if’ thinking should have been going on since Greece started wobbling, if not before. If us plebs could see a looming storm-cloud then, surely the clever beggers in the Civil Service, with all their data and analysis, should have anticipated it before us?

        Like

        • 155
          t says:

          I am sure that ‘Managers’ in the private sector would have already had ‘what if’ planning in place from the start of the Euro project.

          Like

    • 28
      lola says:

      It doesn’t matter what happens with the Euro. It’s already screwed the Eurozone, so from here on out it can be ignored – in the sense that it is failing and will fail, but it is not clear just how it will fail. Better to get on with tax and spending cutting and look westwards and to the Far East and the Commonwealth for trade opportunities.

      Like

      • 45
        Engineer says:

        True, but serious slowing of Europe*n economies must affect our exporters, and hence our economy. We just can’t predict how much or when, that’s the problem.

        Like

  12. 13
    Ewanme says:

    OMG !!!

    It’s all jus sooo fuckin BORIN !!

    E x .

    Like

    • 23
      Billy's alter ego says:

      A bit like you dear. You know the refund policy as Billy is wont to say.

      Like

      • 35
        Ewanme says:

        Not YOU , ya dolt .

        Economics , politics , people wot wank off to all this shit , blah blah , etc etc

        DULL .

        E x .

        Like

        • 54
          Grumpy Old Man says:

          Oh dear. I never thought you were a complete airhead darlin’, must be you’re in rehab after an indulgent weekend. Hop you brighten up after several lattes and a plate of lentil couscous.

          Mwaa XXX.

          Like

          • Ewanme says:

            Maybe , baby x .

            Least I got some fresh air an interfaced with actual livin tissue , darlin .

            *Ewa giggles for first time today*

            E x .

            Like

    • 27
      Stat Tractor says:

      What could possibly be boring about endlessly ploughing all these fertile statistics, E?

      Like

      • 120
        Market gardener says:

        Obviously a fan of ‘wind farms’! A potential product / crop that doesn’t materialise despite the amount of sh*t you throw at it.
        Must admit I’m in the groove with E’s thinking here.
        Harrowing is a little appreciated fact of life.

        Like

  13. 14
    Up sh1t creek says:

    George Osborne’s plan for UK economy, take more from UK’s private sector pensions (learnt from Gordon Brown) and p*ss it up a wall on infrastructure so the LibLabCon developer friends have jobs…. at the same time, screw small businesses with increased taxes to pay for all those subsidies the big companies get.

    And just to make sure the UK economy totally collapses, let everyone borrow more with taxpayers backing, so good solvent companies pay more in taxes to back their feckless competitors who want cheap credit.

    What a plan!

    Like

    • 61
      Helpful says:

      Come back George Brown and Roy Hattersley, all is forgiven. Osborne has been talking to some apparatchik from the 1970s who fucked things up first time around.

      Like

    • 70
      I Remember You Hoo says:

      Osborne’s Plan A, is worse than Brown’s Plan Shite.
      Does anyone seriously still think that Cameron & Co are not corporatist socialist wankeurs?

      Like

      • 84
        Helpful says:

        I am afraid on the latest announcements you are pretty much right.

        Like

      • 89
        Rat's arse says:

        It’s criminal that Balls is wanting this country to go bump, purely so as he can get back into office.
        What a sle*zy shit he is.
        Leiber always spend like lunatics when in office, and when they are forced out, leave the country bankrupt.
        Why do people vote for these bastards?

        Like

    • 147
      Nurse Ratched says:

      Time to swallow the bitter pill Mr O.

      Like

    • 182
      Our Denry says:

      Is Gideon doing a Gordon with his hands?

      Like

  14. 16
    God says:

    Anyone with a brain can see that the bloated public-sector MUST be radically reduced and at some point it will HAVE to be done! A programme of wholesale privatisation (including the suicidally inefficient nhs!) would help to eliminate government debt at a stroke and facilitate the massive tax reductions which are so essential to national prosperity. The so-called public-sector does nothing well and consumes exponentially-growing cartloads of the money extorted from the people via the tax system. What is needed is a government with the common sense and resolve to bring about this revolutionary change before the country finally falls into the pit! This is “PLAN C” and I commend it to the people.

    Like

  15. 18
    The Meissen Bison says:

    “Britain remains a triple-A creditor” (Randall)

    Does he mean debtor? And you quote him so do either of you know what you’re on about? To use one word in lieu of its antonym is worse than careless.

    Like

    • 38
      Totally Corrupt Financial System says:

      Randall could possibly argue that the govt creates money (out of thin air) via the Bank of England and then borrows it from itself at interest. So the govt could be both creditor and debtor at the same time. At least I think that’s what the plot of the Wizard of Oz is.

      Like

    • 46

      Quite right, Randall perhaps meant credit, have altered accordingly.

      The position of sub editor is vacant and unpaid here and possibly at the Telegraph..

      Like

  16. 21
    Gordon Brown says:

    But how does this fit within a post-neoclassical endogenous growth framework? Wibble.

    Like

  17. 25
    Fat alcoholic mick to give evidence at Leveson says:

    Will Guido turn up to Leveson drunk or very drunk?

    Like

  18. 26
    Steve Miliband says:

    Virtually all your money ends up in the Treasury, one way or another, so why not cut taxes as the bastards will get it one way or another

    Like

  19. 31
    The Poet Laureate Writes says:

    SUBJECT: Economics

    Plan A was a spiffing new ruse
    Economically nothing to lose
    It was Gideon’s task
    Not to balls-up the ask
    And make sure Blinky Balls blew a fuse

    Like

    • 74
      Grumpy Old Man says:

      Quote of the Day material.

      Like

    • 197
      Ewanme says:

      Plan A woz beginnin to make sense :
      It promised to save us a few pence .
      We’s lookin for growth
      An guarantors , both .
      To that end : Ed Balls is jus tooo dense .

      © Ewanme 2011

      E x .

      Like

      • 250
        Rick Limerfuck says:

        I think you’re the only c’unt on here that actually understands the mechanics of this most simple of rhymes.

        Like

  20. 32
    Mornington Crescent says:

    Hilarious blog by Katharine Birbalsingh (phwoar), quoting David Lammy meeting the McMentalist:
    http://blogs.telegraph.co.uk/news/katharinebirbalsingh/100119851/david-lammys-passion-is-inspiring-but-he-still-looks-to-the-state-for-solutions/

    Yep, Tax Credits was – still is – the answer to everything with that lot. What amazes me is that we’re not in even deeper doo-doo than we already are.

    Like

  21. 33
    Jingouk says:

    The British people are being hoodwinked.

    The UK economy is parked in a pseudo-communist lay-by in anticipation that the Tories are running out of time and the keys will be handed back to Ed Balls.

    If you work hard enough – but take the weekends off (fat chance), you have income for Monday to Friday. The government takes Monday and Tuesday’s off you – kerrching.

    That leaves three days income to pay for five days of living costs.

    OK – now you want a new TV and you go out a buy one. Out of your income you pay another days income to the government – kerrching!

    You have now handed over 60% of your real income.

    This is asset-stripping up close and personal.

    Like

    • 69
      Engineer says:

      It wouldn’t be quite so hard to accept if what we got for our taxes was superb, but it plainly isn’t.

      For example, what’s the point of spending £120 billion a year on a Health Service in which almost all the doctors piss off on Friday afternoon and don’t turn up again ’till Monday? Don’t people fall ill on Saturdays and Sundays?

      Like

      • 100
        NHS hospitals are deathcamps says:

        +1

        What’s the point of spending £120billion on a health service that leaves people to lie in their own excrement, that infects them with bacteria and takes away patients food, uneaten.

        The NHS is an absolute disaster Only a politician could dream up something so sickeningly cruel and insane.

        Like

        • 251
          Honest View says:

          It’s still the greatest Sacred Cow of all, and no politician dare touch it except with extreme reverence. It MUST be free at the point of death, apparently.
          Don’t other countries with much better health services cheerfully accept a small charge when you turn up at the surgery?
          This free-for-all mentality is crazy in these straitened times.

          Like

    • 82
      Grumpy Old Man says:

      Err…. including weekends, , you have 3 days of income to cover 7 days of living costs. So you’re even more buggered than you thought you were.

      Like

      • 134
        Divine Sarah says:

        Put your finger on it there, Grumpy – obvious answer is to end the commie policy of weekends off, especially in the public sector. Also holidays with pay, an invention of far left unions. End ALL employment regulations and leave entrepreneurs free to create wealth and jobs.

        Like

        • 202
          Our Denry says:

          I think the City of London should operate on Saturdays and Sunday ie working 7 days a week, why not 24/7 after all it is 8-00 somewhere in the world at any one time, just think of the oppotunities, think of jobs created all for the same wages

          Like

      • 236
        Jingouk says:

        Oh no, Grumpy – I’ve got a very good idea as to how much and how often I am being rogered up the jacksie.

        In the commie world of names and numbers, the workers lie comatose over the weekend to resume the toil on a Monday. Every pip squeak steps forward and says ‘Ah but .. there is no VAT on a cake!’. Get my drift?

        We are building more high-speed railways to enable civil servants and politicians at our expense to be whisked about in comfort. How many of the wealth producers – small to medium sized enterprises – travel full fare on the railways?

        It has polarised taxpayer expensed overpaid establishment and at the other end mainly taxpayer benefit claimants, travel couponed whoevers and pensioners.

        The rest are travelling by road.

        Like

  22. 34
    Slave to the steaming stump says:

    It would be a good idea if the Queen instucted her chiefs of staff to arrest the wankers in parliament (including the spads and spinners and gravy trainers in the house of lords)who really are fucking the country.
    They should then be taken by 12 man cutter up the Thames to traitors gate and beheaded, so that they could not interfere again.
    A government of common sense could then be elected.
    I mean ffs why do we still have to listen to the lunacy of the likes of Balls Huhn,Clegg et al. Complete and utter wankers of the first water

    Like

    • 98

      A government of common sense could then be elected

      Er, that’s what happened last time. A country with a sizeable number of spastards voted bigger, even more spectacular spastards into the House of Spastards.

      It is called democracy. Fuck knows why.

      Like

  23. 36
    Lord Lucan says:

    It aint hard. A flat tax of 25% as a start. Cut welfare so that and individuals or family can never get more than the average earnings. Teach children how to speak properly and add up rather than play Xbox and loot. Less Media studies and more Engineering, Science and vocational training. Repatriate powers back from the EU that are a hinderence on Job creation. Singapore and Hong Kong are the Economic models you need to mimic.

    Let the Euro-Fascists in Brussels turn their 17 countries into some high taxing socialist wonderland in terminal Economic and Demographic decline. UK will benefit from the flight of capital.

    Like

    • 170
      Rat's arse says:

      I’m with you all the way Lord Lucan. By the way, where are you?

      Like

    • 199
      Whitey Bulger, Famous Former Fugitive and FBI Fink says:

      And, of course, Your Lordship, you would know about flight of capital. How have you been supporting yourself all these years in South Africa? I had layers upon layers of dummy corporations, which the FBI helped me set up during my time grassing for them against other criminal organisations (till I went rogue), from which I could take money and put into other “confidential” accounts overseas in case I needed to book out quick, which is what happened. You on the other hand seemed to disappear without a plan, though that can hardly be the case, so tell me how you’re doing it– I won’t tell a soul! [snickers up his sleeve]

      Like

  24. 40
    If you live on benefits, how can you afford a plane ticket? And why don't you spend that money on a good cause instead of swanning off abroad? says:

    Like

  25. 43
    Osama the Nazarene says:

    Among other measures Osborne should:

    * Freeze tax credits. Jonah and Balls’ creation should be allowed to “wither on the vine”.
    * Limit the increases to benefits. At present those not working cannot expect to receive extra.
    * Speed up the increase in tax allowances for 2012-13. Those in work must be encouraged.

    Like

  26. 44
    MrAngry61 says:

    Agreed Guido – the country needs tax cuts, not emergency ward style public spending.

    Like

  27. 62
    Anonymous says:

    Lord Willoghby de Broke bbc parliament now

    Like

  28. 64
    Bobby's a Bear says:

    Taxes need lowered for a load of reasons not least to give people some moeny to spend and directly stimulate the exconomy. They should be lowered from the botom-up though. The only decent Lib-Dem policy is the one of raising the tax-free threshold so adopting this shouldn’t be to hard for the coalition – this helps everyone and most helps those who will actually spend money (rather than saving it, paying down debt etc).
    Stimulate the economy through a socially fair way – surely this is an obvious solution?

    Like

    • 91
      Grumpy Old Man says:

      Looking at the rate of inflation of the necessities of living, power,food and clothing, over the last 3 years, Raising the tax-free threshold about £13,000 and compensating by lowering the higher tax 40% and other levels is not only politically advisable but an absolute necessity for the lowest-paid and pensioners. Such a move would also negate the requirement to raise benefits – at least for 2012-13.

      Like

  29. 68
    Loungelizard says:

    I’m fed up with hearing about Milibands squeezed middle. They’re the tossers who with no ability became better off under Blair and Brown. Hit the bastards hard and get us back on track.

    Like

    • 95
      Grumpy Old Man says:

      Yup. Far too many non-jobs and rent seekers in that category, relying on the tax-payers largesse for a comfortable lifestyle.

      Like

    • 162
      Future's so bright I gotta wear shades says:

      These non ‘jobs created to replace shipbuilding, mining, british steel, need to create worthwhile jobs of a similar status!

      Welcome to the National Land Army, farming for the post-petroleum Age!

      Like

  30. 71
    Chuka Can says:

    Like

  31. 73
    Raving Loon says:

    The real problem:

    -The government isn’t actually cutting spending, merely that spending is rising slower than it used to
    -The government is borrowing more than Gordon Brown ever did
    -QE or as it should be called “printing money out of thin air” is destroying the pound and creating real uncertainty. Furthermore it makes it difficult to correctly identify productive uses of capital if prices lose their meaning somewhat.
    -The government is re-directing capital from productive to unproductive uses, delaying worthwhile investment in favour of headline grabbing government schemes
    -low interest rates that are actually negative in real terms will create another housing and asset bubble. When it bursts expect a repeat of the Tech Boom and sub-prime mortgage crises with multible business failures due to the misallocation of resources
    -We’re bankrupt but won’t admit it. We are defaulting via inflation and denying the obvious. The only reason we are not in Greece’ position is because we can print our own money.

    Like

  32. 78
    Billy Bowden is the greatest umpire ever ! says:

    The problem is the public sector paid for by many who earn less than say Mps, the public sector is in denail and lacking reallity.

    Like

  33. 79
    The Spanish Spanner says:

    But did Guido put Bad Al’s statement on line or was he merely linking to it?

    Like

    • 86
      Bad Judge says:

      Statement of Mr Alastair Campbell: Lord Justice Leveson was extremely concerned to hear that, on 27 November 2011, a copy of the evidence that Mr Alastair Campbell intended to provide to the Inquiry was published on the ‘Gu ido Fawkes’ website.

      http://www.levesoninquiry.org.uk/

      But the Lord justice is in error it was not published on the Gui do Fa wkes website, like it was published in it’s entirety on the Tom Watson website.

      Like

      • 96
        Rat's arse says:

        Hope Guido points that out to this enquiry B.J.

        Like

      • 99
        God says:

        You and I know that, but Leveson is asleep!

        Like

      • 106
        Grumpy Old Man says:

        Yeah, but Mr T Watson is like Caesar’s wife – there is no stain on his character. Softly softly catchee monkey is the name of the game. Hence, Leveson asks Guido to appear before him so that evidence of the origin of the offending document can be laid before the Inquiry. Guido, I do hope your arse is firmly covered and your belt and braces firmly tightened. Good luck, The Forces of Evil will be spinning like tops between now and Wednesday.

        Like

        • 252
          Honest View says:

          Just don’t turn up, Guido. Send a curt note asking Leveson whether he too believes in freedom of speech for all or just for himself.

          Like

  34. 83
    Alex says:

    The problem is a lack of exports. If you are not exporting, tak a pay cut.

    Like

    • 112
      Engineer says:

      Sod all to do with exporting. The problem is individuals, corporations and governments spending more than they earn, and central banks loosening credit controls and consequently allowing the lending of more than can be paid back.

      Answer? Stop spending more than you earn, and don’t borrow what you can’t pay back. That applies to individuals, corporations and governments.

      Like

      • 157
        John Maynard Keynes says:

        You can’t do that! If everyone stayed within their means the economy would grind to a screeching halt! It’s called the Paradox of Thrift– if no one borrowed or spent, the banks would be flush with money they couldn’t lend at interest, and so they’d have to refuse deposits. People would then stick their money in the Royal Bank of Mattress until they had enough to pay off their debts, which the banks couldn’t refuse to accept if tendered. But then the banks would still have all this money they couldn’t lend at interest, because nobody borrows any more. The whole system would go to hell in a handcart, don’t you see? Borrow, borrow, spend, spend– that’s the way to prosperity!

        Like

  35. 97
    Billy Bowden is the greatest umpire ever ! says:

    Congrats Guido and Neo-Guido :-)

    Like

  36. 100
    No Future says:

    How about a corporation tax holiday?

    Like

    • 176
      I Remember You Hoo says:

      How about ending corporation tax completely? While you are at it, why not end all taxes on employing people?

      Like

  37. 102
    Ken Russell RIP says:

    Good bloke.

    Like

    • 126
      CHRIST ON A BIKE! says:

      Crap films!

      Like

      • 140
        Dave Figgley says:

        Ha ha, mate. I once saw ‘The Devils’ and ‘Easy Rider’ as a double billing in some seedy, backstreet Soho cinema whilst coming up on a huge hit of mushrooms. It was one of the worst trips I’ve ever had, son.

        Like

  38. 107
    Rip van Wrinkle says:

    Raise the tax allowance to £15k. Higher rate cuts in at £30k. This means it’s worthwhile working whilst at the same time high earners don’t get the most benefit. And you’ll save a fortune of the tax credit bribery scheme.

    Restrict tax allowance on pension contributions to basic rate. Why the fuck should someone on £100k a year get more government help to finance their pension than someone of £10k?? Answers on a postcard. please.

    Slash public sector salaries for those above £25k a year. 10% for those between, say, £25k and £40k, 20% for those £40k to £60k, and at least 40% for those above £60k. If those ‘highflyers’ in the public sector are so fucking good, let them get a job in the private sector..oh, hang on, there’s no jobs in the private sector, is there!

    Love to see it. But these politicians, who spout ‘change’ and ‘hope’ and bollocks such as this, are unable to change themselves. Always been the same. They like the system as it is…they get rich at it.

    Like

  39. 109
  40. 123
    I don't need no doctor says:

    Luciana Berger has just been on the Daily Politics. She is really thick!
    Jo Coburn is an irritating interviewer – if you ask a question let them fucking answer without interrupting. Nice body though.

    Like

  41. 125
    Guido for the high Court says:

    Any person who acts in breach of Section 19, which binds everybody, is potentially liable for breach of the order and can be referred to the high court for appropriate action,” Leveson said.

    http://www.guardian.co.uk/media/2011/nov/28/leveson-concern-guido-fawkes-leak?newsfeed=true

    Like

  42. 127
    I don't need no doctor says:

    Be nice to see Ed Balls sell all his assets, including the family home, and set up a small business. Then he could set on a bunch of the youngsers labour so love.
    He wouldn’t have the guts to do it. However Balls with a load of tax payers money would be a different story.

    Like

    • 143
      anon says:

      It would be nice to sell some of Ed Balls’s assets for him, by way of a compulsory fire sale to help restore Britain’s shattered finances after he helped leave them in ruins.

      Some of his assets that I’d sell would include his liver, kidneys, heart and lungs. And I would sell them this afternoon.

      Like

      • 214
        jgm2 says:

        Some of his assets that I’d sell would include his liver, kidneys, heart and lungs. And I would sell them this afternoon.

        To a petshop.

        Like

  43. 131
    strategist says:

    Agreed cut taxes. If bond yields rise (which they will if/when the Euro tanks) cut spending.

    Like

  44. 164
    Fenton says:

    Why does that man keep shouting ‘Jesus Christ’ at me?

    Like

  45. 165
    EdButLookBalls says:

    Al- Beeba’s World at One mention Guido’s blog re Alky Campbell leak, Twatson no mention at all!!

    FFS!!!

    Like

  46. 169
    CHRIST ON A BIKE! says:

    No government has lowered the tax burden, not in the longer term anyway.

    Governments are addicted to tax money. Labour bankrupt the government finances trying to gerrymander and buy support, the Conservatives then don’t make the necessary cuts because they don’t want to anger to many people into voting against them.

    Re-balancing the tax system just won’t happen. Any attempt to look like they are cutting taxes will just be more smoke and mirrors, giving with one hand and taking away with the other, political gimmickry.

    Osbourne and especially the Lib Dems don’t have the guts to do what is needed, which is long term REAL tax-cuts and public spending cuts. Expect a few gimmicks before the election, but in this parliament don’t expect any change.

    Like

  47. 172
    whats wrong with the UK says:

    on Sky news 12.29
    61% of people say they sympathise with the strike who the fuck are these twats,FFS

    Like

    • 178
      Voice of Reason says:

      Probably people who have an education and can comment without using foul language.

      Like

      • 183
        I don't need no doctor says:

        That’s not the voice of reason, that’s the voice of a dictator.

        Like

      • 193
        Anonymous says:

        think you mean the 61% of Labour voters

        Like

      • 234
        jgm2 says:

        Which is why they’re sitting at home on a weekday afternoon ready to participate in the poll.

        Educated?

        I doubt that.

        Like

        • 246
          Huge Grant says:

          They never ask me and I am a member of the British population. Those people who support the strikes should be the one’s who cough up for the gold-plated public sector pensions. They could add the question to next year’s tax returns.

          Like

    • 180
      Rat's arse says:

      Ret*rds W.W.W.UK, feckin ret*ards.

      Like

    • 190
      WVM says:

      Sympathise doesn’t mean agree and support, as we in the private sector have already been through it maybe that’s were some of it is coming from. Besides Sky News polls are easily conned if you know how to use a computer.

      Like

  48. 187
    Moussa Koussa says:

    Hilarious……. Clearly a change in economic direction…call it “Plan A+” coz “Plan B” sounds too much like the oppositions stance….how very Cameroon…LOL

    Like

    • 205
      WVM says:

      There’s a big difference between Labours ‘borrowing your way out of debt plan’ and this so called plan A+, take the time out to read MK.

      Like

      • 210
        Moussa Koussa says:

        Stop apologizing for this rabble. The borrowing requirement is going to rise.

        7bn to the Irish
        1 billion to India’s job creation schemes
        40 billion to IMF
        1 Billion to Project “ Hide Yoof Unemployment figures”
        20 billion to underwrite small business loans.

        …This makes Brown Economics look prudent.

        Like

  49. 189
    Moussa Koussa says:

    Who gives a monkey….Guidos days are now numbered. You can share a cell with Andy Cockson

    Like

  50. 200
    Moussa Koussa says:

    Busy at the shredder …are you Guido….LOL

    Like

  51. 218
    Moussa Koussa says:

    Cock head is such a spin marketing loon…Such antics take up 100% of his time, hence being such an awful PM.

    I’m surprised the “Plan A+” wasn’t called “I Can’t Believe It’s Not plan A”

    “Because Plan A Is Worth It”

    “Vorsprung durch Plan A”

    “Happiness is a plan called plan A+.”

    “Planz Planza Planza+.”…….LOL

    Keep on apologising

    Like

  52. 222
    Moussa Koussa says:

    Errrrrr “”Now that Rail fares are 20% higher than when I became chancellor…I’m going to cap any rises from now on””””…….YOU COULDNT MAKE IT UP !!!!

    Like

  53. 225
    Craig says:

    Is Guido sill seriously trying to pretend he’s not some Ashcroft funded stooge!?

    As a “libertarian”, it’s funny how most of his articles are either attack jobs on the opposition, or government leaks on Labour figures.

    Like

  54. 226
    Craig says:

    “Gordon Brown inherited an economy in a sweet spot and left an economy drowning in debt, Osborne believes he must bear down on the deficit to keep the confidence of the bond markets.”

    Debt was 46% of GDP in 1997. It was 46% of GDP in 2007!?

    Do you even research any of this, or are you just fed it by Ashcroft…………

    Like

    • 228
      jgm2 says:

      Errrr… I think you’ll find Labour lost power in 2010 – by which time debt was 60% of GDP and the annual deficit was 13% of GDP and we’d just had the longest ,deepest recession for 90 years. And even the anaemic ‘growth’ was only engineered by borrowing that 13% of GDP.

      You are Ned Balls and I claim all your food expenses.

      Like

      • 231
        Craig says:

        Yes, but that was the effects of a global recessions, most of the Eurozone’s banks failing, and having to borrow huge amounts of money to keep the global economy up front.
        You know, if all debt accumulated by the UK government during a recession is the governments fault, then will the collapse of the Eurzone be the coalition’s fault?

        Like

        • 233
          jgm2 says:

          You know, if all debt accumulated by the UK government during a recession

          The big problem was the huge amount of debt (and PFI obligations) accumulated by the Maximum Imbecile during the ‘boom’.

          As you well know.

          Like

  55. 229
    Craig says:

    You know, I just struggle to tell the difference between “political blogging” and “political tabloid journalism”.

    You both seem to just publish rubbish, to support the political party who pays for your web site, your e-mail servers, and probably your rent as well…………….

    UK debt was 46% of GDP in 1997. Exactly what it was in 2007.

    How is “Gordon Brown inherited an economy in a sweet spot and left an economy drowning in debt” factually true?

    As I said, the only difference between this and The Sun, is at least the Sun admits that it has some Tory spin doctor feeding them their dodgy lines!

    Like

    • 232
      jgm2 says:

      Exactly what it was in 2007.

      How is “Gordon Brown inherited an economy in a sweet spot and left an economy drowning in debt” factually true?

      Because Gordon Brown was slung out not in 2007 but in 2010. At which point his decade of recklessness had caught up with him (and us).

      Silly boy.

      Like

      • 255
        NEET says:

        Careful now. It is integral to the our story here at Labour that the debt as a percentage was the same at the start and the end. What is a couple of years and a 10 or 15% percent between friends. Besides, in 97 it had risen from a low point of under 30% which is where it also was when Labour had followed the prior government’s spending plans – oh shit did our policies really double debt. Look, honestly the Tories had done something similar running up debt in the 90s from a low point of about 30% as a means of countering economic problems. Anyway the difference was trivial compared with the debt including lending to the banks – oh my God how much – look lets forget that figure. It was all the fault of the greedy bankers. They wanted to make money and we wanted them to so we could boost tax revenues and bribe the electorate to vote for us. We just didn’t realise there was an implicit taxpayer guarantee standing behind them regardless of what risks they took. So lets push the reset button. After all the Tories have been in power now for 18months so what is happening now is surely their fault. By the way I can’t imagine why they don’t borrow more to fund a stimulus package – we always did when the voters were unhappy. Just on that point any of you financially astsute – if we get a downgrade to AA or A in the next few days will I be able to get a better yield on GILTS. You see I have a small nest egg which I was hoping …. never mind

        Like

  56. 254
    spragga benz says:

    Why does it always have to be about growth?

    Why can’t we have a non-growing economy?

    Why can’t we make do with an iPad 1 instead of an iPad 2

    Like

    • 256
      NEET says:

      If you are upgrading could i have your old ipad 1? By the way, there is a reason we need growth as Mr Ponzi will explain. If your liabilities ratchet up each year from inflation (how is your index linked pension by the way – or did you not have a governement job) then you need to get more money in each year to pay back your liabilities. Its very simple really. And when your own population can’t grow – bingo, you bring in some new ones. Preferably ones that aren’t looking for a life on benefits. So as the song goes “wider still and wider shall thy bounds increase, God who made thee mighty make thee mightier still” That was our motto at new labour

      Like


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