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Sunday 19 October 2008

Tax and spend

Gordon Brown's puppet Chancellor of the Exchequer is reported in an interview with the Sunday Telegraph to have
"declared that the government will boost its spending in an attempt to help the economy weather the recession about to grip Britain."
How will this increase in public spending be paid for? Silly question, this is a Labour government so Alistair Darling's plan is simple
"He admitted government borrowing would have to rise sharply – turning his back on the possibility of spending cuts or tax rises – claiming that previous debt repayment over the past 10 years has made such a course of action possible. "We can allow borrowing to rise,""

Of course increased borrowing now will lead to increases in taxation later, but this "plan" allows Labour to accuse the Conservative party of planning "cuts" in essential public services and thus trying to frighten the voters.

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