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Boy George's Big Budget

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Sometime on Tuesday afternoon the implications of George Osborne's first Budget will be known. There has already been much leakage but not yet on a BP scale.

The Budget will have to be taken as a five year effort to right the deficit. Thus we are in for the long haul. If George's gets it right the Tories will be re-elected in 2015. If he doesn't then the Coalition will be over much sooner than we could have expected.

The arguments have been well rehearsed. J.M.Keynes would have supported the Labour Government's plans to cut the deficit carefully over the next three years so as not to damage growth in the economy. Indeed, most mature economies have followed the Brown Plan. 

Osborne wants to slash and burn the public sector. This is a much harder task with pension and employment rights better than in the private sector. It would take two to three years to be able to achieve this alone and much anyway is actually outside his jurisdiction - council tax, NHS, Schools spending and public pensions - that all he may be able to do is reign in the future and cap the present.

We'll all know in about 4 hours time.


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