Spending cuts or tax increases

Gordon Brown and the Labour party are tying themselves up in knots over public spending. Their line that the election will be a choice between Labour investment and Conservative cuts is being laughed at in every corner of the media.

But even if it were true what would that mean?

If Labour are really going to increase spending where would they get the money? The interest payments on the national debt are going through the roof so additional borrowing isn’t an option available to them. The only other option is a huge increase in taxation.

So what is it going to be Mr Brown, honesty about public spending cuts or do you have a plan for a major hike in taxation? I think we should know.

4 responses to “Spending cuts or tax increases

  1. Where would they get the money?
    Easy – privatize all the banks we bought so cheaply.

    If the government get this right they should easily be able to sell their shareholdings in all the semi-nationalised banks to pay of the debts incurred in bailing them out, and have a small profit left over for public spending or tax cuts. Just look at the £1.5 billion profit made by Abu Dhabi by choosing the right time to sell Barclays shares.

  2. Where would they get the money?
    Easy – privatize all the banks we bought so cheaply.

    If the government get this right they should easily be able to sell their shareholdings in all the semi-nationalised banks to pay of the debts incurred in bailing them out, and have a small profit left over for public spending or tax cuts. Just look at the £1.5 billion profit made by Abu Dhabi by choosing the right time to sell Barclays shares.

  3. we need cuts in public spending to avoid ay further debt that labour has put us in over the past 12 years. Its a sad fact, but the truth hurts.

  4. we need cuts in public spending to avoid ay further debt that labour has put us in over the past 12 years. Its a sad fact, but the truth hurts.

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