Today is likely to be very quiet in the UK as we all await the Chancellorís budget statement this afternoon and you do have to have a certain amount of sympathy with Alistair Darling as he attempts to justify the disastrous mismanagement and profligacy of his boss. Whatever happens now, rightly or wrongly, he will almost certainly go down in history as being one of the worst Chancellorís of the Exchequer ever.
The betting is on a spread of £175-£200bn of borrowing requirements this year. That means that, just for 2009, the state will be overspending by around £5.5k per wage earner. If you cut out public sector workers, nearly £8.6k for every net contributor into the exchequer.
The prospects for next year are pretty much the same if you have confidence that the recessionís nadir has been reached but it is still a leap of faith that any green shoots will deliver the kind of growth that we have seen over the last ten years.
The unpalatable fact is that the major reason that the UK was doing reasonably well for the entire Labour period in office has been because of the rape and pillage of our future assets to pay for a one off surge in public sector spending.
The above comments do not constitute investment advice and neither Capital Spreads nor Clean Financial accept any responsibility for any use that may be made of them.
Risk Warning: Spread betting carries a high level of risk to your capital. You may lose more than your initial investment. It may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
Article provided / approved by Capital Spreads which is a trading name of London Capital Group Ltd which is authorised and regulated by the Financial Services Authority (FSA), FSA Register number 182110.
'The Budget and The Markets' edited by DB, updated 22-Apr-09
Jobs and Banking, updated 03-Jul-09
The Bank of England expects that house prices have seen the worst and that there are enough independent signals to indicate that the economy is in a position to grow in...read article: Jobs and Banking.
UK Taxes and Stronger Banks, updated 24-Jun-09
There is a small sense of medium sized to large corporations finally starting to baulk at various new business tax burdens being continually levied in the UK. In separate stories...read article: UK Taxes and Stronger Banks.
Is it Time to be More Positive?, updated 14-Apr-09
For most of the Major indices we are now in the constricted trading area which defined the mid Jan to mid Feb volume trading range. Reading the analysts comments we can see a sharp divide in opinion arising. Half appear to think that...read article: Is it Time to be More Positive?.
Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary.
The contents on CleanFinancial.com are for information purposes only and are not intended as a recommendation to trade. Nothing on this website should be construed as investment advice.
Neither CleanFinancial.com nor any contributing company/author accept any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.
* Tax law is subject to change or may differ if you pay tax in a jurisdiction other than the UK.