Today the Chancellor of the Exchequer announced his special budget for the UK . Overall, the plan is to reduce the government’s deficit from STG 149 billion to STG 20 billion over a 4 year period. In percentage from 10.1% of GDP to 1.1% of GDP. The cuts are severe, and actually are somewhat similar to what Canada did in the mid 90s, with one big difference, for Britain this will be actual spending costs, in Canada the expenses were effectively shifted from the central government to the provincial ones. Bottom line a 25% reduction in government expenditure in all but two departments: healthcare and foreign aid. Also increases in taxes: Capital gains tax rise by 10% to 28% (with a STG 5 million lifetime exemption) VAT rise of 2.5% to 20% Corporate tax down from 28% to 24%, but dramatic reduction in exemptions Bank tax The impact on the economy will be mixed, the reduction in corporate taxes will be balanced out by an import...
Life of a Norfolk farmer