Pre-Budget Report 2009
Darling's Last Stand
The last Pre-Budget Report before the election was billed as the Chancellor's chance to say how the huge financial deficit would be closed.
In that respect it was a bit of an anti-climax. It was fiscally neutral with any tax raised being spent on social or environmental measures. He indicated when and by how much he expected the deficit to come down but without giving any real idea of where the necessary spending cuts would fall. Indeed he confirmed that Government spending would be maintained for next year.
The tax on banker's bonuses which had been widely trailed was duly announced. Much of the other pre speech speculation was wide of the mark, however. The political content of the tax changes was less than expected and the speech was received in a fairly low key manner – the biggest cheer of the day was reserved for the cut in bingo duty!
The Chancellor said that it was important not to stifle the economic recovery by cutting spending too soon. That is a widely held view but it remains to be seen whether or not the financial markets will have confidence in his medium term plan of campaign without a few more specifics.
It is perhaps too much to expect bravery from a politician in a pre election period.
Bob Wheatcroft
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