STOCK MARKET WATCH -- Friday, 16 March 2012

[Ghost Dog]

8. UK Budget 2012: Britain's economy needs to be modernised

The budget is almost upon us and already the speculation is rife. Cameron and Osborne have been negotiating through the media with Clegg and Alexander – not on how to support British business through an active industrial strategy but on how to cut the 50p top rate of tax for the richest 1% while slashing tax credits for working people. Meanwhile Vince Cable, an increasingly ineffectual business secretary – at odds with the roadblocks to reform in Downing St – watches from the sidelines.

Aside from arguing about the tax burden on the top 1%, Cable pointed out in his leaked letter to the prime minister that, beyond deficit reduction, the government has failed to look "beyond the electoral angle" and has no "compelling vision of where the country is heading". So the government is long on short-term tactics and short on long-term strategy – that is what Cable is saying.

This is deeply worrying. In the context of the biggest squeeze on living standards in a generation and in an age of increasing global competition, we need to reform and modernise our economy so it secures jobs and investment at home and ensures we can pay our way in the world. While governments such as those in Germany, the US and Singapore have placed a strong partnership between productive business and active government at the heart of business policy, the dominant view of Britain's Conservative-led administration is that the best it can do is step back when industry is crying out for it to step up, creating the conditions for our enterprises and wealth creators to prosper and grow...

/... http://www.guardian.co.uk/commentisfree/2012/mar/16/budget-2012-britain-economy


Comment on the Guardian article from bailliegillies (and see below):

Funny isn't it how the political parties make various demands while in opposition but quietly forget them once in power. How long was nuLabour in office and just how much change did it bring about? Well apart from fiddling with the usual, health, education and human rights.

I expect a lot of talk and vague promises (as ever) from NuBluerLabour while in opposition but no action if and when they return to power.