UK offers US$3.7b carrots for growth
By Jane Wardell |
March 25, 2010, Thursday
|
Print Edition
Print Edition
The British government yesterday cut its deficit forecasts and announced a 2.5-billion-pound (US$3.7 billion) one-off growth package for the economy as the centerpiece of its annual budget yesterday - its last before a national election.
Chancellor of the Exchequer Alistair Darling fulfilled his warnings that there would be few giveaways in the spending plan as the government seeks to cut a record budget deficit, but did offer some voter-friendly measures such as a reduction in taxes for first-time home buyers.
"This will be a budget to secure the recovery, tackle borrowing and invest in our industrial future," Darling told lawmakers in the House of Commons. "It will continue targeted support for business and families where and when it is needed."
Lagging behind the main opposition Conservative Party in the polls for an election that is expected on May 6, the Labour Party government is trying to spin its hands-tied position into an example of steady stewardship in times of austerity.
Darling stressed that the government's actions during and after the financial crisis had meant that Britain's 19-month long recession, which ended in the final quarter of last year, did not slide into a depression.
The government maintained its forecast for economic growth this year of 1-1.5 percent, but lowered next year's forecast slightly to 3-3.5 percent from 3.5 percent.
"The recovery is still in its infancy, and there are still tough choices ahead," Darling said, adding that financial markets are "still febrile" and that recovery "is not preordained."
Labour has resisted calls to cut stimulus measures faster, by cutting spending and hiking taxes, to help cut the budget gap, arguing that could send the economy back into a double-dip recession.
But Darling did lower official forecasts for the deficit out to 2014/15.
Chancellor of the Exchequer Alistair Darling fulfilled his warnings that there would be few giveaways in the spending plan as the government seeks to cut a record budget deficit, but did offer some voter-friendly measures such as a reduction in taxes for first-time home buyers.
"This will be a budget to secure the recovery, tackle borrowing and invest in our industrial future," Darling told lawmakers in the House of Commons. "It will continue targeted support for business and families where and when it is needed."
Lagging behind the main opposition Conservative Party in the polls for an election that is expected on May 6, the Labour Party government is trying to spin its hands-tied position into an example of steady stewardship in times of austerity.
Darling stressed that the government's actions during and after the financial crisis had meant that Britain's 19-month long recession, which ended in the final quarter of last year, did not slide into a depression.
The government maintained its forecast for economic growth this year of 1-1.5 percent, but lowered next year's forecast slightly to 3-3.5 percent from 3.5 percent.
"The recovery is still in its infancy, and there are still tough choices ahead," Darling said, adding that financial markets are "still febrile" and that recovery "is not preordained."
Labour has resisted calls to cut stimulus measures faster, by cutting spending and hiking taxes, to help cut the budget gap, arguing that could send the economy back into a double-dip recession.
But Darling did lower official forecasts for the deficit out to 2014/15.
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