Budget 2009: Dismay of the economist

23-04-2009

Budget 2009: Dismay of the economist
A leading Oxford University economist expressed his disappointment with yesterday's Budget for not doing enough to pull the UK out of recession.

Christopher Allsopp CBE, a senior fellow at the Oxford University school of economics and a director of the Oxford Institute for Energy Studies, told inthenews.co.uk the chancellor could have gone further and pointed out the problems with some of his headline announcements.

He said: "I think a good deal more could have been done in terms of stimulus - I am not nearly as frightened by the deficit figures as some people. But I sympathise with the chancellor because it is almost impossible politically.

"If the private sector is going to get out of debt, then as a matter of accounting the public sector is going to have to find the counterpart.

"There was nothing surprising at all - it was a broadly neutral Budget reflecting the little room for manoeuvre. There was some specific help for specific sectors but small change overall."

Mr Allsopp predicts the chancellor's announcement of new 50 per cent income tax for the highest earners will have little real impact.

He said: "It will receive huge public attention but the numbers affected are not all that high and I am not sure it will raise that much money. There will still be those who know how to avoid paying."

And he was equally uncertain about the effect of the high-profile car scrappage scheme.

"I have my doubts about whether it will work. The manufacturers will not like the fact they have to pay half the cost at all. And I remain to be convinced that it will have a big effect in terms of carbon emissions."

Bookmark with:
Bookmark with: Digg Digg Bookmark with: Del.icio.us Delicious Bookmark with: Reddit Reddit Bookmark with: StumbleUpon StumbleUpon Bookmark with: Google Google Bookmark with: Technorati Technorati Bookmark with: Netvouz Netvouz

Latest News:

Search News
News Front Page
Accountancy / Tax
Advertising / PR
Armed Forces
Automotive
Aviation / Aerospace
Banking / Finance
Charities / Voluntary
Childcare / Youth
Construction / Property
Customer Services
Education / Training / Teaching
Emergency Services
Engineering / Electronics
Entertainment / TV / Theatre
Graduate Roles
Health / Beauty
Hotel / Catering / Restaurants
HR / Recruitment
Insurance / Pensions
International / Overseas
IT / Internet
Legal
Management / Business
Manufacturing / Industry
Media / New Media / Creative
Medical / Healthcare
Pharmaceutical Industry
Public Sector
Retail / Wholesale
Sales / Purchasing / Marketing
Science / Technology
Secretarial / PA / Admin
Skilled / Semi-skilled Manual
Telecommunications
Transport / Logistics
Travel / Tourism / Leisure