UK to Have Bankers, Mega Rich Help Clear Debts
Spiralling debt levels in the UK have lead to big pain for the nation’s economy, but Chancellor Alistair Darling has a solution. He recently unveiled his plan to pull the economy out of recession: turn to Britain’s primary sources of big money, banks and the super wealthy.
Facing what financial experts consider to be the nation’s biggest debt ever, £178 billion, the effects of the financial crisis that swept the globe in the past year are blamed for much of Britain’s debt. Darling’s combination of raising taxes and cutting spending was designed to reduce this debt by half in the next four years. With a look towards the next General Election, Darling’s financial plan is to take an ax the debt by taxing banks in order to help those suffering economically at the lower levels of society. In an effort to institute more fair levels of taxation, Darling intends to shift the tax burden to rest more heavily on the shoulders of those households that earn a significant amount of income.
However, Darling’s one cent a day pay cap on public workers in 2011 has drawn fire from unions. His 0.5% increase for National Insurance so that those earning £20,000 or more face a tax hike, has also proved unpopular. With an upcoming stamp holiday extension being canceled, inheritance tax taking a freeze at £325,000 and VAT rising 2.5% at the first of 2010, the Chancellor has understandably raised some ire amount certain segments of Britain’s population. To offset these potentially upsetting measures, Darling alleviated a rise in corporation taxes, sparing more than 750,000 small businesses in an effort to boost the economy from the ground up and that the government would do more for those who could find work to stay off welfare. The State pension will be rising, along with child and disability benefits across the UK. These changes, paired with additional government help for people of all ages actively seeking work were designed to offer guaranteed jobs or training to those seeking to better their lives.
While Darling wants to see major cuts in spending, sectors such as police, education and health would not see substantial cuts. Recovery is the focus of these plans and to do that, the Chancellor envisions a shoring up of public services and infusing the economy with the funds needed to activate workers and businesses at the micro level with effects that should rise over time.
Darling has stated that he believes the economy will take a turn for the better in the upcoming year, but that it could still be somewhat rocky. Conservatives have accused the Chancellor of tossing out financially sound planning in favour of electioneering and a failure to convince the world that Britain is ready to do big business.
