Skip to comments.[Chancellor of the Exchequer] Osborne: UK has run out of money
Posted on 02/26/2012 5:10:25 PM PST by bruinbirdman
The Government 'has run out of money' and cannot afford debt-fuelled tax cuts or extra spending, George Osborne has admitted.
In a stark warning ahead of next months Budget, the Chancellor said there was little the Coalition could do to stimulate the economy.
Mr Osborne made it clear that due to the parlous state of the public finances the best hope for economic growth was to encourage businesses to flourish and hire more workers.
The British Government has run out of money because all the money was spent in the good years, the Chancellor said. The money and the investment and the jobs need to come from the private sector.
Mr Osbornes bleak assessment echoes that of Liam Byrne, the former chief secretary to the Treasury, who bluntly joked that Labour had left Britain broke when he exited the Government in 2010.
He left David Laws, his successor, a one-line note saying: Dear Chief Secretary, Im afraid to tell you theres no money left.
Mr Osborne is under severe pressure to boost growth, amid signs the economy is slipping back into recession.
The Institute of Fiscal Studies has urged him to consider emergency tax cuts in the Budget to reduce the risk of a prolonged economic slump.
But the Chancellor yesterday said he would stand firm on his effort to balance the books by refusing to borrow money. Any tax cut would have to be paid for, Mr Osborne told Sky News. In other words there would have to be a tax rise somewhere else or a spending reduction.
In other words what we are not going to do in this Budget is borrow more money to either increase spending or cut taxes.
The strongest suggestion of help for squeezed family budgets came from the Chancellors
(Excerpt) Read more at telegraph.co.uk ...
Well, there is money, just not money monetized yet. Grow yourself some Gerbera daisies, trade them for some kippers.
Just raise taxes much more. The people will understand.(/lib speak)
The money and the investment and the jobs need to come from the private sector.
The something-for-nothing crowd is the same everywhere. And they never understand. The solution is simple: “Cut spending and cut government!”
Government does not produce wealth. It only consumes it. The bigger the government, the more wealth it destroys!
OK, I have the answer - a huge Tea Tax. They drink a lot of that. Oh, wait, the Brits tried that in the 1700s and that was a huge failure.
Well he must not be much of a treasury guy ... just do like we do ... print some. Even a guy who can operate Turbo Tax figured that out.
Raise taxes again!
...can’t operate ...
Socialized medicine is a bottomless pit.
Coming to a country near you.
So Lady Thatcher was right, eh?
Absolute BS. Like nobama and his thugs, if they would just get the F* outta the way the economy would recover on it's own. But, NOOOOOOOOOO... they gotta tinker with this and tinker with that. Meanwhile the country goes to hell.
They raised taxes and recieved LESS revenue!
Now they “cannot afford tax cuts”
They could get another half billion if they cut the rates back to where they were. They won’t though. Too bad they already spent that and much more in advanced.
Go figure. No, really...go figure. Our external debt to GDP ratio is about 102%. The UK’s external debt to GDP ratio is 478%.
(pssst...It’s the socialism, stupid.)
Socialism is legal plunder - Frederic Bastiat 1801-1850
Above all, if you wish to be strong, begin by rooting out every particle of socialism that may have crept into your legislation. This will be no light task. - Frederic Bastiat 1801-1850
What is going on around FR? Aren’t they printing any of the stuff anymore? America is at $15 billion barrowed. Maybe America can go to 20 billion, loan 5 billion to UK and become a creditor nation again. s/
The coalition with the Liberal-Democrats was a poison pill for the Tories. With it, came the necessity of raising taxes. This, in turn, caused tax receipts, and the economy, to decline. The alternative, however, was four more years of Labour. This was a bit like it would be for us to decide between Romney and Obama in November.
Surely there’s a printing press in the basement they can crank up and start churning out hundred pound notes.
After all, it “worked” for America, it’ll surely work for Merry Olde England.
Billion? Dude that’s a rounding error in the good old USSA. If it ain’t a Trillion it’s not real money to Zero and Helicopter Ben....
Coming to a country near you.
Socialism is a bottomless pit.