Monday, 28 May 2007

Brown's Budget

Like the anorak I am, I've downloaded the full budget and may spend "some time" reading it. He had a deficit of GBP37.2Bn and expects this to increase "slightly" over the next 3 years or so.

Next thing I'll do is download the LRC version and compare and contrast and then attempt to come up with our strong arguments about its feasibility. The fact that Brown has a growing deficit makes things difficult as we have less room to manoevre - but it also means that the argument about a left deficit is lost! All comments/thoughts welcome!


Chart 1.1 presents public spending by main function. Total managed expenditure (TME) is expected to be around £587 billion in 2007-08. TME is divided into Departmental Expenditure Limits (DEL), shown in Table C13 of the FSBR, and Annually Managed Expenditure (AME), shown in Table C11 of the FSBR.

Chart 1.2 shows the different sources of government revenue. Public sector current receipts are expected to be around £553 billion in 2007-08. Table C8 of the FSBR provides a more detailed breakdown of receipts consistent with this chart.


Doctor Dunc said...

There's quite a lot of 'wriggle room' within Brown's budget though. Scrap Trident for a start. Also some progressive proposals are more-or-less revenue neutral.

However, we shouldn't apologise for policies that would increase revenue, so long as they are progressive.

Interesting tables, by the way. It's intriguing how little revenue (comparatively) comes from corporation tax and business rates.

John Angliss said...

But you try abolishing Corporation Tax and see what a gap you have to fill... I should know: my home island, Guernsey, is doing just that and it has meant cuts everywhere.

Curlew said...

Thanks Dunc, Trident is first on my list :-)

To be the devils advocate - perhaps we should start a thread on Trident. Make sure that we've covered all the effects that scrapping it will create?

John, hope Guernsey isn't a tax haven for you ;-) I think I would like to increase Corp Tax rather than abolish it.

Doctor Dunc said...

Me too. I was essentially commenting that both would appear to be set rather low.

(Yes - a Trident thread would be good).