November 17, 2005

GREEN LIGHT FOR BROWN TAX CUTS:

King blames Brown for economic slowdown (FRASER NELSON, 11/17/05, The Scotsman)

THE Governor of the Bank of England yesterday blamed Gordon Brown's tax rises for slowing down Britain's economy as he issued fresh forecasts predicting the lowest growth rate for 13 years.

In unusually candid remarks, Mervyn King singled out tax rises in the Chancellor's 2002 Budget as he linked the high street slowdown to shoppers whose net pay has been cut as the tax haul rises. The Bank now expects economic growth of 2 per cent for this year - adding to the cascade of data suggesting that Mr Brown is being hopelessly optimistic by predicting growth of 3-3.5 per cent. [...]

The share of the economy consumed by the government rose from 40 per cent in 2002 to a tax burden of 41.6 per cent this year, as Mr Brown raised more tax to help fund his spending bonanza. "The ratio has gone up by almost two percentage points," Mr King said. "This has contributed to the sharp slowing in real household disposable incomes in the second half of 2004."


What party of the Right wouldn't kill for that kind of rhetoric from a central banker?

Posted by Orrin Judd at November 17, 2005 7:57 AM
Comments

Too bad Britain doesn't have a party of the Right...

Posted by: b at November 17, 2005 10:37 AM

As long as Blair & Brown are there Labour is.

Posted by: oj at November 17, 2005 10:44 AM

You have to wonder if Blair and Brown are planning a tax cut, and this statement is designed to prepare Labour for it.

Posted by: pj at November 17, 2005 10:49 AM
« WELL, THE TORIES ARE TAKING LONGER TO PICK A LEADER: | Main | UNEXPECTED?: »