Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: https://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:

triangleLecturers strike around country in defence of pensions

trianglePrivate profit out of our NHS

triangleTunisia: explosion of protests against government austerity

triangleA world in crisis, ripe for revolution

triangleRetail sector crunch: nationalise to save jobs

Budget:

triangleSwansea Labour council votes for cuts

triangleSpring Statement 2018: Tory austerity staggers on despite economic and political weakness

triangleSalford nurseries consultation delayed

triangleSnow chaos showed the bosses' coldness - but also workers' grit

Banks:

triangleA socialist approach to Corbyn and a customs union

triangleCapita in crisis: bring all outsourcers back in-house

triangleThem & Us

Reports and campaigns

Reports and campaigns

25/4/18

NUJ

Journalists' union leaders defeat call for political fund, but potential for left grows

25/4/18

Usdaw

Retail union backs zero-hour ban, leaders oppose rank-and-file coordination

25/4/18

McDonalds

McDonald's strikers: "We demand a living wage and decent conditions"

25/4/18

Yorkshire

Sheffield and South Yorkshire: no to closures - defend our NHS

25/4/18

Southampton

Southampton: the cuts or no cuts election

24/4/18

Newham

School strike forces head to say privatisation will stop

23/4/18

Hull

College protest against job losses

22/4/18

Bromley

Bromley library workers win strike campaign

18/4/18

UCU

UCU members vote to end pensions dispute

18/4/18

Usdaw

Usdaw conference 2018: time for new era of fighting trade unionism

18/4/18

Leeds

Victorious Fearnville Fields campaigners thank the Socialist

18/4/18

Hull

Hull says no to war, no to austerity

18/4/18

The Socialist

The Socialist - a fighting, campaigning, workers' paper

18/4/18

Socialist Party

Building fund: 150,000 milestone smashed!

18/4/18

Fighting Fund

Give us your change (and more) to fight for system change!

triangleMore Reports and campaigns articles...


Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube

LATEST POSTS

CONTACT US

Phone our national office on 020 8988 8777

Email: info@socialistparty.org.uk

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 0798 202 1969

East Mids: 0773 797 8057

London: 020 8988 8786

North East: 0784 114 4890

North West 07769 611 320

South East: 020 8988 8777

South West: 07759 796 478

Southern: 07833 681910

Wales: 07935 391 947

West Mids: 02476 555 620

Yorkshire: 0114 264 6551

ABOUT US

ARCHIVE

Alphabetical listing


April 2018

March 2018

February 2018

January 2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999