Alistair Darling: Higher taxes after recovery
Posted by rantingkraut on October 30, 2008
According to Alistair Darling: “… once the current crisis has passed … the Government will have to “live within its means” and return the public finances to balance. That sets the scene for higher taxes and lower spending in the next parliament.” (source)
Given the current mess, that is unfortunately a reasonable prediction. One should take care to remember though, that labour managed to consistently run a deficit during the decade of uninterrupted high growth which preceded the current recession. More importantly for the future, there is not much detail on the issue of spending cuts. We can rely on labour to increase taxes any time, but where will they cut back once the recession is over? Will MP’s be among those experiencing cuts in perks? Will they finally sack everyone with the word ‘diversity’ in their job title? Will they get rid of the superfluous institutions and programmes they have introduced? I doubt it.
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