Saturday 19 June 2010

Coalition Honeymoon Will End With The Budget

http://news.bbc.co.uk/1/hi/politics/10356401.stm

David Cameron has said next week's budget 'will be when the rubber really hits the road'.

All eyes will be on the Chancellor, George Osborne,  next Tuesday when he delivers the first Budget of the new coalition.

I fear for all those working in the public sector and on benefits who are going to be hardest hit by the huge cuts in public spending that will no doubt be announced.

I also believe the PM and Chancellor will ignore the latest warnings from the Adam Smith Institute not to raise Capital Gains Tax, which will cost the Government over £2bn  in lost revenues, have a devasting effect on small businesses trying to recover from the recession and could in the longer term, slow the economy down even further.

Labour leadership contender Ed Miliband is right when he says that the Coalition could be in trouble if many Liberal Democrat backbenchers voice serious opposition to any draconian measures contained in the Budget.

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