Tuesday, 25 November 2008

Pre-Budget Tension...

The burning question about this most leaked budget must be will it work? Will it tempt people back out into spending and borrowing and pretending like it's 1999 again?

The answer for a lot of people is probably no. Because if you have bought a house in the last five years, with a 100% plus mortgage, changed your job in the last couple of years or work part time and have little chance of a decent redundancy deal, if you are maxed out on your credit card limits or nursing big loans and only paying back interest every month, if you pay by direct debit for your energy and have just had a massive increase in payments, if you are in a part ownership housing scheme and the rent for next year is going up or being swallowed up by your property portfolio because there's now no profit in buy-to-let, if you've been offered a cut in wages to save the company, reapplying to justify your job, seeing department budgets slashed...will you really wake up today and shout 'fabulous budget, I feel so much better' and rush off shopping? I don't think a few pennies off VAT will feel like much of an incentive at all. ( National Insurance Contributions should probably have a change of name to National Debt Levy..)

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