Posted on 05/11/2010 1:09:12 PM PDT by Ernest_at_the_Beach
The new Conservative-Liberal Government is expected to pitch itself as a unity government with the purpose of overhauling Britain’s economy after the biggest economic crisis and deepest recession since the 1930s.
It will pledge to hold an emergency Budget within two months, which is expected to include the harshest austerity measures imposed on Britain in postwar history.
At the core of the coalition deal is a compromise hammered out by the two parties over their fiscal plans.
The Conservatives are understood to have agreed to adopt the Liberal Democrats’ plan to raise the level at which people start paying income tax from just under £6,500 to £10,000, but this is likely to be paid for by scrapping their plan to increase National Insurance allowances.
There are also suspicions that this policy will be classified as an “aspiration” rather than an instant policy change.
The news may frustrate businesses, since it would potentially undermine their gains from the proposals. Miles Templeman, Director-General of the Institute of Directors, said: “It seems to us that business growth and the economy have been forgotten during these negotiations. This is very worrying because unless we get a strong and secure government, businesses are likely to continue to postpone investment decisions.”
The LibDems are also understood to have agreed to Tory demands to start cutting public spending immediately, with as much as £6bn of cuts implemented this year, .........
(Excerpt) Read more at telegraph.co.uk ...
Ok, THAT is good news. That is significant, especially compared with Obama's cutting a measly 100 million dollars from the budget.
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