Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: http://www.socialistparty.org.uk/issue/295/13972

From The Socialist newspaper, 12 April 2003

Brown's Budget

Low growth and high deficits end Chancellor's surplus

JUST AFTER we go to press, on 9 April, chancellor Gordon Brown presents his budget. The financial media's 'experts' think it will be a 'dull' budget - but then it's not the experts who'll be paying the cost.

National Insurance (NI) rose by 1p in the on 6 April. This hidden tax rise hits hardest at low-wage and middle-income earners. It's supposedly to pay for small and very belated public service increases such as rises in NHS spending.

What's more, many NHS workers, threatened with back-door privatisation and foundation hospitals which could mean big profits for private entrepreneurs remain unconvinced that much has improved.

That scepticism is mirrored within the general population - in a MORI poll last weekend, 36% said they thought the health service would continue to deteriorate over the next few years compared to 29% who think things are getting better in the NHS. Last year, most of the public believed that the service would improve.

This is unlikely to get better as Brown's lucky days of easy financial surpluses are over. He had already cut estimates of economic growth. In last November's mini-budget, he cut the anticipated rate of growth to 2.5%-3% for 2003 and 3-3.5% for 2004. Less than six months later Brown will probably cut these forecasts by another 0.5%.

Lower production means less tax revenue. In 2001 Brown gave back over 11 billion to rich business executives in one year through corporation tax cuts alone. Then last November Brown predicted that 3.4 billion less income tax and 3.7 billion less corporation tax would come in than he'd hoped. This is going to get worse next year.

Even worse, as economic growth falters, the budget deficit rises. Brown will now have to increase government borrowing. Last year the chancellor thought the deficit would total 13 billion. Last November he predicted a rise to 20.1 billion in 2002/3, 24 billion next year and 19 billion the year after.

Now Brown is likely to be borrowing nearly 30 billion with a predicted deficit of 28 billion in 2003/04 and rising still further to 31 billion the year after.

Brown still puts his trust in capitalism to deliver new booms. He's also assuming that the big companies are going to be paying their taxes. The capitalist class themselves aren't so sure about the boom and even less certain that they'll be paying their tax.

As the article below shows, Brown is facing a weakened world economy and low growth. How long will it be before capitalism demands bigger spending cuts and/or huge tax rises?

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


In The Socialist 12 April 2003:

It's Occupation Not Liberation

Privatising The NHS

Call Centre Workers Fight Job Cuts

Nursery Nurses On Strike

Money for services, Not for War!

War In Iraq - The Endgame

US Plans To Recolonise Iraq

Brown's Budget

USA: Problems in the world's engine room

Iraq - Imperialism's Grim Legacy

Standing For The Millions, Not The Millionaires: Vote Socialist Alternative

Repression And War Is Fuelling Palestinian Anger


 

Home   |   The Socialist 12 April 2003   |   Join the Socialist Party

Subscribe   |   Donate  




Related links:

Budget:

triangleTory housing policy: build zilch, hike prices

triangleSocialist Students day of action demands free education

triangleMake the Tories history

triangleSocialism 2017 Socialist Students meet-up

triangleLively student demonstration for free education could have been much bigger

Tax:

triangleThe Socialist Inbox

triangleTrump's tax plan: Robin Hood in reverse

triangleThem & us

triangleTrump's tax attacks

NHS:

triangleSouth London health bosses' cover-up

triangleTotnes MP uses coffin controversy to distract from brutal NHS cuts

triangleSave our NHS

Capitalism:

triangleTrump's incendiary Jerusalem statement reignites Israeli-Palestinian conflict

triangleA world in crisis, ripe for revolution

Gordon Brown:

triangleHow Blairism sank its claws into the Labour Party

Reports and campaigns

Reports and campaigns

16/12/17

Haringey

Blairite council 'all ears' to rich property developers

16/12/17

North West

Arriva bus drivers' action wins pay rise

14/12/17

Waltham Forest

Stop the rotten redevelopment plan, demand residents

13/12/17

London

Six months on - still no justice for Grenfell

13/12/17

Fracking

Movement growing against fracking giant Ineos

13/12/17

Devon

Totnes MP uses coffin controversy to distract from brutal NHS cuts

13/12/17

Miners

Tory plan to hold dinner at coal mining museum defeated

13/12/17

Bradford

Bradford campaign to save children's services launched

13/12/17

South London

South London health bosses' cover-up

13/12/17

Blacklisting

Unite day of action against blacklisting

13/12/17

Brighton

Brighton victory

13/12/17

Newham

Newham anti-academies strikes

13/12/17

Tamil Solidarity

Tamil Solidarity and Refugee Rights activists meeting

12/12/17

Woolwich

Support the Crossrail Woolwich walkout

7/12/17

Blacklisting

Unite protest against blacklisting

triangleMore Reports and campaigns articles...


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

triangle16 Dec Blairite council 'all ears' to rich property developers

triangle16 Dec Arriva bus drivers' action wins pay rise

triangle14 Dec Stop the rotten redevelopment plan, demand residents

triangle13 Dec Six months on - still no justice for Grenfell

triangle13 Dec Movement growing against fracking giant Ineos

triangle13 Dec Totnes MP uses coffin controversy to distract from brutal NHS cuts

triangle13 Dec Trump's incendiary Jerusalem statement reignites Israeli-Palestinian...

More ...

triangle18 Dec Leeds Socialist Party: Religion and Socialism

triangle19 Dec Bristol North Socialist Party: Christmas social

triangle21 Dec Wakefield Socialist Party: Socialists and the National Question

triangle6 Jan Socialist Party national women's meeting

More ...

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

Archive

Archives:

December 2017

November 2017

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