Chancellor George Osborne has just delivered his second Budget. He's cut fuel duty and Corporation tax. Meanwhile inflation has risen again, the 2011 growth forecast has been downgraded, GDP is on the wane and unemployment continues to rise. 'Britain has a plan and we are sticking to it,' said Chancellor Osborne.
'It's the same old Tories: it's hurting, but it isn't working,' retorted Ed Miliband, leader of the Labour party, after the announcement.
In an effort to counteract rises in fuel prices, fuel duty is to be cut by 1p per litre immediately. To encourage businesses Corporation tax is to be cut by 2% in April and then cut by 1% in each of next three years, to 23%.
The offshore oil and gas industry was reeling though after they were hit with an extra 2 billion tax bill to pay for the fuel duty cut. Those working the City were also less than enthusiastic with the rise in the bank levy rate brought about by the cut in Corporation tax. Checks and balances.
It's a budget about growth but has the Chancellor done enough?
Inflation in the UK rose again in February to 4.4%, up from 4% in January. Chief among the accelerants were energy prices, again, while trying meekly to apply the brakes was the fall in price of alcoholic spirits.
Unemployment in the UK now stands at 8% up from 7.9% after the jobless total rose 27,000 to 2.53 million in the three months to January, its highest point for 17 years. GDP dropped to -0.6% in the fourth quarter of 2010
The latest minutes from the Monetary Policy Committee (MPC) showing that the vote was split six to three in favour of keeping interest rates at 0.5%.
The dilemma facing the UK and the MPC is what to do about interest rates. Some argue that a smaller rise now will help ease inflation and will be much less painful than a larger rise six months down the line if inflation spirals out of control. Others contend that the need for economic growth is stronger than the need to fight inflation and that a rate rise could jeopardise the recovery.
To raise, or not to raise. What would you do?
'It's the same old Tories: it's hurting, but it isn't working,' retorted Ed Miliband, leader of the Labour party, after the announcement.
In an effort to counteract rises in fuel prices, fuel duty is to be cut by 1p per litre immediately. To encourage businesses Corporation tax is to be cut by 2% in April and then cut by 1% in each of next three years, to 23%.
The offshore oil and gas industry was reeling though after they were hit with an extra 2 billion tax bill to pay for the fuel duty cut. Those working the City were also less than enthusiastic with the rise in the bank levy rate brought about by the cut in Corporation tax. Checks and balances.
It's a budget about growth but has the Chancellor done enough?
Inflation in the UK rose again in February to 4.4%, up from 4% in January. Chief among the accelerants were energy prices, again, while trying meekly to apply the brakes was the fall in price of alcoholic spirits.
Unemployment in the UK now stands at 8% up from 7.9% after the jobless total rose 27,000 to 2.53 million in the three months to January, its highest point for 17 years. GDP dropped to -0.6% in the fourth quarter of 2010
The latest minutes from the Monetary Policy Committee (MPC) showing that the vote was split six to three in favour of keeping interest rates at 0.5%.
The dilemma facing the UK and the MPC is what to do about interest rates. Some argue that a smaller rise now will help ease inflation and will be much less painful than a larger rise six months down the line if inflation spirals out of control. Others contend that the need for economic growth is stronger than the need to fight inflation and that a rate rise could jeopardise the recovery.
To raise, or not to raise. What would you do?