Archive for March, 2010

UK Budget assumes growth the Consensus misses

March 24, 2010

Well on first sight the political budget expected. Should bring some cheer to labour supporters particularly as 60% of the pain will be felt by 5% of the workers (or so the Chancellor tells us). However the growth projections used in the budget seem unlikely to be achieved. Accordingly the outlook for the structural deficit remains unclear, and will have to be addressed in a robust manner by whoever is in government come June. If they don’t then the City will call time and, as we all know, the bond market always wins.

The stamp duty holiday below 250K that starts today (with the offsetting 1% increase (from 4% to 5%) from £1m up but deferred until April 2011) is probably good news for the market as a whole going forward. However, Labour now joins the LibDems in appearing to attack those who have worked hard and got ahead in life, and echoing my words above, that 5% may be starting to think that 60% of the pain is not a sustainable outcome.

Welcome to Michel d’Anjou

March 23, 2010

Welcome to Michel d’Anjou’s blog.