Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://www.socialistparty.org.uk/issue/310/11693

From The Socialist newspaper, 5 April 2011

Belt-Tightening Brown Threatens Cutbacks

GORDON BROWN has warned his fellow ministers to abandon any hopes of big rises in next year's public spending round. Latest figures say that the government is in the red by almost 14 billion in the first three months of the financial year.

That compares to 10 billion in the same period of 2002.

Capitalist commentators say that Brown's forecasts of a 27 billion deficit for the year were wildly optimistic. They think weaker economic growth will reduce tax receipts and push the deficit over 30 billion - 20 billion more than Brown predicted a year back.

Mervyn King, the new governor of the Bank of England, says the economy is in for a bumpy ride as the consumer boom winds down. That boom has been fuelled by debt.

Household spending has risen faster than output for the first time in history. The Bank of England encouraged this - it brought growth of sorts.

But now household debts, after their most rapid growth since 1990, have hit an all-time high of just under 120%.

People are now tightening their belts noticeably - if banks, credit cards etc. stop lending so much money to consumers like us, some economists fear a new recession.

Whether that happens or not, the government will definitely need to borrow more. Brown hints that health and education spending would be unaffected but economists calculate that every percentage point reduction in economic growth below the government's over-optimistic target would add 6 billion to 8 billion to the 'hole' in the budget forecasts.

To fill this hole Brown is likely to cut public-sector spending and increase job loses as well as increasing borrowing and raising taxes. The crisis in the capitalist system is preparing a big shock for its most trusting defenders - New Labour.

Why not click here to join the Socialist Party, or click here to donate to the Socialist Party.


In The Socialist 5 April 2011:

Blair Must Go

Should The Unions Campaign To "Reclaim The Labour Party"?

Devon Bus Workers Fight Low Pay

Belt-Tightening Brown Threatens Cutbacks

Heathrow: Why Furious Workers Walked Out

Iraq: Opposition To US/UK Occupation Mounts

Hutton Enquiry: No trust in Blair

Kelly Death Deepens Blair's Crisis

Pride 2003: Fight The Bigots And Bullies

Fighting homophobia: Take The Argument Into The Communities

Pride Or Profit?

Austria: Success In Defending Women's Right To Abortion

French Unions' Protests How The Movement Was Built From Below


 

Home   |   The Socialist 5 April 2011   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Debt:

triangleYoung people being strangled by debts

triangleNasty party imploding...drive out the Tories

triangleNHS meltdown - fight the Tory cuts

triangleHousing crisis: Corbyn's positive measures blanked by Labour's right

triangleTories wreck our NHS

Budget:

triangleTories scrap the NHS pay cap: now fight for real-terms pay rises!

triangleBalloting members on the pay cap

triangleMonarch abdicates responsibility to workers

triangleCapitalism and human progress

Banks:

triangleThem & Us

triangleDefuse the consumer debt time bomb: nationalise the banks!

Reports and campaigns

Reports and campaigns

19/10/17

North West

Arriva North West bus drivers strike over pay

18/10/17

Democratic rights

Conference on state spies: who's watching who?

18/10/17

Leeds

Striking back against sackers' charter at Leeds Uni

18/10/17

Royal Mail

Royal Mail bosses block strike - back postal workers

18/10/17

PCS

Balloting members on the pay cap

18/10/17

Art

'Dazzling' Bad Art show points to socialist future

18/10/17

Council

Sheffield Labour council threatens peaceful protesters with prison

18/10/17

South West Wales

Hundreds turn out for rally aimed at removing west Wales Tory MP

18/10/17

NHS

Uprising to save the NHS!

18/10/17

Socialism

Can you donate to the Socialism 2017 appeal?

18/10/17

East London

No cuts - hands off King George A&E!

18/10/17

North London

North London hospital workers fight cuts and job losses

18/10/17

BAE

Nationalise to save jobs at BAE Systems

18/10/17

Schools

Schools "can't go any further" - stop the cuts: set deficit budgets now

18/10/17

Swansea

Socialist Students 'welcome' Hillary Clinton to Swansea

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party

triangle19 Oct Arriva North West bus drivers strike over pay

triangle18 Oct Russia, October 1917: When workers took power

triangle18 Oct Tories torn - bin them now

triangle18 Oct Royal Mail bosses block strike - back postal workers

triangle18 Oct Balloting members on the pay cap

triangle13 Oct The end of the Tories?

triangle11 Oct Nasty party imploding...drive out the Tories

More ...

triangle23 Oct Chesterfield Socialist Party: The continuing struggle for abortion rights

triangle24 Oct Liverpool Socialist Party: The October Russian Revolution 100 years ago to the day

triangle25 Oct Salford Socialist Party: The October 1917 Russian revolution

triangle25 Oct Swansea Socialist Party: Mother Jones - A US labour pioneer

More ...

Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

Archive

Archives:

October 2017

September 2017

August 2017

July 2017

June 2017

May 2017

April 2017

March 2017

February 2017

January 2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

Legal

SP RSS feed RSS

Platform setting: = No platform choice

V2