There’s little to worry about, according to the Chancellor, Alistair Darling.
Everything is under control and by 2011 Britain will be growing at 3.25%.
The fastest growth rate in 10 years or more, this will be truly wonderful – nothing short of a miracle, in fact.
We’d no doubt all be delighted if the above scenario was to come about but, unless things improve globally, Darling will likely prove extremely over-optimistic.
Most people can see little cause for such optimism.
Business confidence is failing in Europe and the US’s appalling house price falls are continuing, without any sign of an upturn.
Despite Gordon Brown’s oft-repeated vision of himself leading the world into a bright new dawn, the tax plan which he led and gained international agreement on is not looking too clever and far from being fresh, it’s already slightly tarnished.
When Darling's VAT cut hit the worldwide news, few around Europe were impressed
When his VAT cut – working out at a meagre £2.50 on an item costing £117.50 – hit the worldwide news, few elsewhere in Europe were impressed.
Among those unconvinced by the move were Germany and France, who decided to focus their own efforts on bailing out their beleaguered car industries.
This must have been somewhat disappointing for Gordon Brown, who wanted a more coordinated action across the continent and indeed the world.
Tax rises
As the recession continues and the scale of the financial malaise becomes apparent, it seems there is little choice but to increase taxes.
Despite the fact that many small businesses are close to collapse and major high-street names are disappearing at a frightening rate, the government is planning to increase taxes on businesses.
And there has been a half point increase in national insurance costs.
In total, our Labour government is set to levy on companies and workers with tax rises amounting to more than £12bn.
Many people doubt the wisdom of what is, in effect, a rise in a tax on jobs – particularly given the high and spiralling unemployment.
Tax receipts of £73bn less than predicted, national debt set to rise twofold in five years, resulting in a figure of £1 trillion – and where’s the money gone?
The good times, which now seem a long-time distant, should have resulted in a surplus of money – ready for the bad times.
So much for the Prime Minister’s rhetoric about good housekeeping and prudence when Chancellor.
No wonder the Conservatives are up in arms at every chance.
David Cameron talks of helping the prudent and elderly, but with the best will in the world, the debts they’re likely to inherit will tie their hands, too.
There are promises of financial stability returning at the end of all this, but in fairness, and as Mr Brown is so fond of telling us, it’s a global problem, a world downturn.
And it seems as though there’s a long, long way to go yet.
