Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page: https://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?

Donate to the Socialist Party

Coronavirus crisis - Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • Our 'fighting coronavirus workers' charter', outlines a programme to combat the virus and protect workers' living conditions.
  • When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.
We therefore urgently appeal to all our viewers to donate to our special coronavirus appeal.

Please donate here.

All payments are made through a secure server.

My donation

 

Your message: 

 


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:

triangleNewham campaign set up against council cuts and tax hikes

triangleCapitalist crisis and Corona: Johnson's budget for the bosses

triangleCamarthenshire: Councillors' 'walk of shame'

triangleSwansea: Ask anyone about state of services, you will hear the real story

triangleSalford 'no-cuts' budget includes cuts and tax rises

Tax:

triangle30 years since the huge anti-poll tax demo... And how mass non-payment of the tax was built

triangleLiverpool & District Socialist Party: 30 years ago - How the poll tax was defeated

triangleEast London Socialist Party: Couldn't pay, wouldn't pay, didn't pay - How we beat the Poll Tax

triangleNewham council tax workers' pay victory

NHS:

triangleContract tracer speaks out: Tories' plan is outsourced chaos

triangleCommunities condemn Tory handling of crisis - with safe protests

Capitalism:

triangleThe Jungle: capitalism's remorseless attack on workers' safety and conditions

triangleUniversal Basic Income: not a solution to insecurity and poverty under capitalism

Reports and campaigns

Reports and campaigns

22/5/20

Obituary

Mick Cotter 21-9-57 to 20-5-20

22/5/20

Rolls Royce

Strong union response needed against job cuts

20/5/20

CWU

Postal workers' action results in double victory for union

20/5/20

NSSN

Organising to fight for workplace safety

20/5/20

Peterborough

Posties walk out in Peterborough after manager tests positive

20/5/20

Covid

Johnson claims workplaces safe but HSE cancels inspections

20/5/20

Protest

Safe protests against Tory corona chaos continue

19/5/20

Hull

Trades council debates workers' political representation

18/5/20

Coronavirus

Communities condemn Tory handling of crisis - with safe protests

18/5/20

Coronavirus

Contract tracer speaks out: Tories' plan is outsourced chaos

18/5/20

Coronavirus

Parents - Organise against 'back to school' plans that threaten everyone's safety

13/5/20

West Midlands

West Midlands trade union activists discuss the battle for safety on the front line

13/5/20

RMT

Transport union RMT tells members: refuse to work in unsafe conditions

13/5/20

Boris Johnson

Johnson's plan terrifies me - readers react to lifting lockdown

13/5/20

Housing

Starmer in full retreat over C-19 rents crisis

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: 079 8202 1969

East Mids: 077 3797 8057

London: 07748 534 891

North East: 078 4114 4890

North West 079 5437 6096

South West: 077 5979 6478

Southern: 078 3368 1910

Wales: 079 3539 1947

West Mids: 024 7655 5620

Yorkshire: 077 0671 0041

ABOUT US

ARCHIVE

Alphabetical listing


May 2020

April 2020

March 2020

February 2020

January 2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999