Budget Nightmare continued

I said I would provide you more details about the Government Budget nightmare. Well, the Conservative Treasury Team have put out the below statement, and it makes grim reading.

"Yesterday, we had a dishonest Budget. The Chancellor described the worst recession, the fastest rising unemployment, and the worst public finances that this country has had since the Second World War. But he could not describe a credible solution. In fact, he based all his forecasts on optimistic growth forecasts that the IMF discredited just over an hour later.

Even on his figures, thanks to Labour's economic incompetence, our national debt is going to double again to £1.4 trillion, and every child born will come into this world with a debt of £22,500.

Whatever the spin about taxing the rich, Labour's tax rises are for the many and not just the few. They are planning to raise taxes on fuel and on average earners. And the result will be a £1,000 tax rise on every family over the next two years.

Public spending

Not for the first time, it will take a Conservative government to get us out of Labour's mess. We understand that we need spending restraint to tackle Labour's debt crisis and avoid crippling tax rises in the recovery. Spending restraint that needs to start now, rather than in two years' time.

50p top rate of tax

We do not believe this new tax rate is the right thing to do. We don't support it, but we're not going to get dragged into playing Labour's games. There are a number of new tax rises we don't agree with, but this one will have to take its place in the queue. The Conservative priority is that of all of Gordon Brown's tax rises, the most important one to avoid is the National Insurance increase for millions of people earning £19,000 or more.

Fuel duty increase

Family budgets are being squeezed yet further as a result of the measures set out in the Budget. We are consulting on plans for a fair fuel stabiliser to replace the current fuel tax regime, so that tax falls when the price rises, and rises when prices fall. This would protect the public finances from fluctuations in the international oil price, and help families cope with rapid changes in the cost of living. "

In summary, this means: taxes up, debts up and unemployment up. No wonder, a number of people in Broadwalk yesterday told me how furious they were with Gordon Brown. They know a con when they see one.

P.S: The latest opinion polls, post-Budget, show Labour support slipping to 27% and the Conservatives up to 45%. It seems like the Government have been rumbled.

P.P.S: The highly respected independent Institute of Fiscal Studies has put out a statement saying:

"The government must close a £90bn hole to bring the budget into balance . That would cost every UK family £2,840 per year by 2017-18 in higher taxes or public spending cuts."