The Budget 2008

As you may be aware, this Wednesday (12th March) is Budget Day when the Chancellor outlines his spending and taxation plans for the next financial year.

What kinds of things do you expect to see in this year's budget?

It'll be interesting to see how accurate we are after the speech, so feel free to use this thread to discuss the measures after they're announced.

The Chancellor will make his budget speech to the House of Commons at 12:30pm - this'll be Alastair Darling's first budget speech too.

Well, it will be Gordon's budget (basically).

Stupidly, taxes are set to be increased (when we need cuts in order for us citizens to have larger disposable incomes) and the economic growth will be downgrade for this year.

The budget will try and kick start business with some cuts, but will be limited and little really. Overall, more borrowing and less spending.

reply to post by infinite


This is a consequence of too much borrowing, which I always find mystifying... surely a basic financial rule (not just for governments but for individuals too) is that you try not to spend more than you earn; you only borrow when you have to (i.e. when times are hard).

We see nations like Norway with hundreds of billions of pounds in surplus, and here we are in debt (and slinking down deeper). Balancing the budget is so important... I think if we'd had a balanced budget then the turbulence in the markets would be far less serious because measures could have been taken to keep people spending, thus fuelling the economy and its continued growth.

What we need is shrewd investment and a simple, effective policy for our public finances (i.e. the public need to decide whether they want low taxes or high public spending... both have their downsides).

So... predictably booze and fags go up (a surprising above-inflation increase on alcohol, though), fuel goes up in October and a plastic bag tax may be on the horizon if supermarkets don't do something voluntarily.

On the other hand, winter fuel allowances for the elderly have increased, more cash has been set aside for families who are in 'fuel poverty' (i.e. pay more than 10% of their earnings in domestic energy bills) and non-domicile tax avoiders will be targeted.

Obviously there's more to the budget than the above points, but what stood out for you? What aspects were good and what aspects were bad, and why do you think that?

Traditional Labour budget

Money for the poor, children and the elderly...we saw redistribution of wealth! I've waited so long for a left wing budget!!

I must admit I was surprised at how 'good' the Treasury forecasts were.

Debt has not spiralled out of control (and remains historically low by post-war UK standards.....and compared to the record of the last tory Gov ) and the UK economy will continue to grow @ 1.75% - 2.25% (which, amazingly, is growth at a rate not very far off of the post-war trend rate = 2 - 2.5%).
Inflation too remains under control (again rather surprisingly given the uK post-war record).

It was nice to see the child benefit increase, the winter fuel payment going up for pensioners (the over 80s extra bit was a pleasant surprise), there was some more money for the MOD, some interesting proposals about vehicle duty for gas-guzzlers & there was a nice (kind) allowance for charities which would have been facing losses on the tax relief they can claim back when the basic rate of personal income tax drops to 20p.

Nothing startling of course (but then that in itself is something of an achievement given the general economic climate in the world) but a rather cool' steady as she goes' type of budget.

I would also say that I genuinely think we saw a very poor performance from the opposition in their responses.
Adnmittedly they have to do a lot of their writing on the hoof as the speech is being given but Cameron seemed so vague and weak and Clegg did the usual Liberal 'all things to all men' thing.

reply to post by sminkeypinkey


I thought Cameron did ok given the circumstances, but Clegg wasn't very impressive. I still think they made a mistake getting rid of Ming to be honest.

Cameron put downs on Balls were priceless though. To be fair, I think Cameron response was limited because, well, the budget was limited it self. Not a lot the opposition can say or do really.

Clegg was poor, he basically repeated what the Tories said last year.

reply to post by infinite


Agreed. The comment about Ed Balls was excellent, especially given that it was spur of the moment stuff.

The press have complained that the budget was dull this year but... perhaps that's the way it was intended to be? This isn't the time to rock the boat with lots of spending and other flourishes, so maybe Darling is simply trying to keep an air of calm and predictability about things on purpose.

I made out the Ed Balls comment as "so weak" but I see all the tory press went with Cameron's misheard "so what".
To be expected I guess.

[edit on 15-3-2008 by sminkeypinkey]

Tomorrow's poll reading is not good. Labour is on 27% and the Tories come in at 43%, Lib Dems on 16%

Yeah, no surprise but I am shocked how negative Nick Clegg is being perceived by the public. The EU walkout stunt was stupid and the three-line whip for the treaty vote wasn't any better either.

I do feel sorry for Darling though, he is a really nice man and very intelligent too. But I guess it is hard to follow and do well after Gordon Brown. Plus, he is very unlikely to become Chancellor during an economic down turn.

Ed Balls to be in No.11 by the summer.

reply to post by infinite


I'm not sure about that... I don't think Gordon Brown can afford to get rid of Darling so quickly. If he did it would be seen (rightly or wrongly) as Brown acknowledging that part of the economic downturn was down to his government (or him personally when he was Chancellor) and he wouldn't want to do that.

I could definitely see Darling out of the Treasury by the time the election is announced, however. He'll be tainted goods by then, which is sad because I agree with you; he seems a very intelligent, pleasant and thoughtful man in very difficult circumstances.