Reuters (July 21)
Upon becoming Prime Minister, Andy Burnham is eschewing “generic” appeals to grow the economy and instead focusing on specifics. He announced “plans to end rough sleeping and cut the 5% VAT on electricity bills.” He also plans to cap bus fares and reduce property taxes on pubs and other hospitality venues. “This more focused potholes-and-pockets approach from the ex-Manchester mayor might connect with voters and reduce the risk of more instability in a country that has had seven leaders in 10 years. But it risks delivering few long-term economic gains.”
Tags: Burnham, Bus fares. Property taxes, Economic gains, Economy, Electricity bills, Generic, Hospitality venues, Instability, Potholes-and-pockets, Prime minister, Pubs, Risks, Rough sleeping, VAT, Voters
Financial Times (January 3, 2011)
Last year, the UK adopted austerity measures which slashed government spending and increased the value added tax to 20%. Most leading economists believe this big gamble to reduce the deficit is “likely to pay off.” A Financial Times survey of 78 leading economists concludes the recovery has “sufficient momentum to avoid a deep double-dip.” Only 13 of the surveyed economists believe the government will need to come up with an alternative plan to combat a downturn in the economy.
Tags: Austerity measures, Economic outlook, UK, VAT
