Economic impact of a Labour win

wotsthat

Thrugelmir wrote: »

Appears that Gordon's budget forecasts were awry. Today reflects decisions made years ago not yesterday. Remind us what happened in 2010/11 after the coalition took office........

The current government is overspending by most measures. The deficit is enormous and way in excess of what was promised when the parties were falling over themselves in 2010 to see who could be the most austere.

More and more I think excuses are being made for the overspending. If Gordon Brown hadn't patented the word 'prudence' I think it would be being heavily used by the current chancellor and it would have pretty much the same meaning.

If a GFC hit today it would seem so obvious after the event.

captainhindsight_2

What worries me most is labours terrible idea to freeze energy prices, this will lead to a massive hike in prices before the freeze and then very little private investment into the energy infrastructure and eventually black outs gas shortages it will be a nightmare!

And imagine how bad that will be for business, black outs turning computers, machines, whole factories off at random for unknown periods of time. This is a real issue, with out serious investment into the energy infrastructure this can happen and people don't seem to care or think it can't happen.

There is a big push in the private sector for micro generation (200kW-2mW) using renewables such as solar, ad, chp etc but this is not enough!

Changes in building regs to make new homes carbon neutral or passive will make a huge contribution to this but still more needs to be done and every time a government with any brains tries to suggest something to either reduce demand or increase supply labour say your raising fuel prices and then nothing happens because doing nothing is politically safe until it's to late.

Seabee42

I have high expectation that more pain will be done to pensions if labour get into power. The lib dems talk about it costing the treasury £45b a year to provide tax relief on pensions even forgetting the tax is deferred.

Cutting the deficit is not easy, after all cutting child benefit is usually money spent in the UK so would shrink the economy with knock on effects (even if I totally agree with the premise). So the ideal things to cut is spending outside the UK i.e. foreign aid. Still have to find 90billion a year though or £1384 per person a year in the UK so surprisingly even with no knock on affect at all of losing that spending people will have to be worse of and quite frankly by large amounts.