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3.5% growth!

What planet is he on?

Scrappage scheme- how many people with a ten year old car can afford a new one?

Good to see the government are ignoring Tory calls for cuts, though.

"Good to see the government are ignoring Tory calls for cuts, though."

Tory calls for cuts? Isn't everybody, including many prominent members of the labour party, calling for cuts?

Can I feel a tax rise somewhere about to be revealed?

Lets hope it's on the rich

Bribing young people with money that we have not got - shameful!!

"Lets hope it's on the rich"

Maybe, but if it is anything like the last tax hike then it will be on the poor.

I think you're about to get your wish, Comstock!....

Clouting the "rich" pensioners - spiteful!

50%.....yes!!!!!!

Truely shocking borrowing figures!

Astounding.

50% top rate tax!! This could be an elephant trap - we need to be careful how we respond to it.

So, if you're buying a new car you go and get a banger first for £200 and go £1800 up.

Labour takes us back into 50% tax territory.

50% income tax will kill what's left of the economy. It certainly won't raise any money.

I can only assume Comstock, that you're an accountant licking your lips at the amount of business coming your way as people queue up to hide their money from Brown and Darling?

"So, if you're buying a new car you go and get a banger first for £200 and go £1800 up.

Lets wait for full details, but I don't like this scheme, especially when he has just put fuel taxes up again!

Crazy to subisdise cars with one hand only tax 'em with the other!

Well so far (about 10 Min's in) he has spent a vast amount on the Unemployed and allowed a few business's to defer their tax. We are getting the silly car scraping scheme. All this extra spending despite the fact that taxation is falling. This is clearly a budget aimed at getting Labour reelected. Jam today, but none tomorrow. What a very irresponsible budget. Labour have made their choice and its to increase our debt burden for political reasons. How Darling sleeps at night is beyond me. This is a spend spend spend Budget and an attempt to bribe the population into voting this shower back in for another term. Shockingly transparant, Labour is putting its own desire for power before the long term good of our nation.

Bribing the Armed Forces with promises of extra homes for them (again using borrowed money....) - and he thinks that is suddenly going to make our Servicemen and women love Labour - I don't think so...

"This is a spend spend spend Budget and an attempt to bribe the population into voting this shower back in for another term. Shockingly transparant, Labour is putting its own desire for power before the long term good of our nation."

Quite agree Ross - in fact it shows the desperation of a terminally sick administration which is trying to shore up its core vote.

A recession is occurring because the government has slowly increased government debt (and turn a blind eye to personal debt), resulting in a very big bust at the end of a boom.

A depression will occur if our entrepreneurs, our CEOs, our businesses, are asked to pay for it. They will leave. The country will go into prolonged recession or worse.

New Labour is dead, I keep on underestimating Alistair Darling.

We're doomed....

Yes the scrappage scheme is nuts and I doubt any detail thats contrived can get round all the unintended consequences which anyone can soon imagine if they actually spend time thinking about it!!

A 50p top rate is outrageous. If we don't fight this with everything we've got we might as well go home. How we have allowed the creation of a climate where such an announcement is seen as politically acceptable is another question. For the moment, we need to see Cameron stand up and say he is opposed to this in principle.

50% tax - what a disgrace.

The Tories MUST oppose that. Either we stand for aspiration and enterprise or we stand for nothing at all.

There is no chance he will oppose 50% ( and when you add in the NI surcharge it is in fact closer to 53%). Moreover, you will have loads of "Modernisers" telling the media that the Tories must agree with Labour's plans to soak high earners to "show that they have changed."

The government are trying to bribe their way back into power with money they don't have.

Their schemes up to now have failed and now they just want to throw good money after bad. Now Brown is pawning the future.

They are beneath contempt. I hope Osborne and Ken Clarke are in the media later ramming home the scale of this con.

"you can grow your way out of a recession, you can't cut your way out of it"


The whole think in a nutshell. Scrappage scheme aside, great stuff.....

The borrowing forecasts for the next 5 years are huge, yet based upon unrealisticaly optimistic growth estimates.
It is likely growth will be lower and therefore that borrowing will be even higher than forecast. Quite frightening !

"A 50p top rate is outrageous."

Lol, he might as well make it 99p, few will pay it, most will restructure before it is introduced, and it will raise peanuts.

Maybe people earning 150k can reduce their salaries to 125k and receive 25k a year in tax-free attendance allowances...

and when you add in the NI surcharge it is in fact closer to 53%

And when you add the company's contribution it's 64%.

"A 50p top rate is outrageous." & "50% tax - what a disgrace." I do agree, most especially as he is clearly planning to spend far more than we can afford. 700 Billion pounds of borrowing its loony land stuff. I thought this was supposed to be a fair budget. D.C. will have to play this one carefully. Sally is right this is an elephant trap. David is speaking right now so I'm off to listen to him.

Early indications suggest a big thumbs down in the currency markets - pound fell sharply as the budget finished...

Well, the ISA thing is good - But why only for the over 50s this year?
I expect it's something else that will come clear and it's done for their political advantage to dig them out of some hole.

Fail!

Shares in the airlines will be rising sharply though as high earners book their one-way tickets out of the UK

Sterling is dropping like a stone.

The markets have spoken.

This is the Back to the Future Budget. Get your flares and platforms on, chuck another bin-bag on the heap, dust off those Slade albums- 1978 here we come!!!

Short term borrowing and spending will lead to astronomical medium term inflation. It's easy to get carried away on the deflation bandwagon, but what situation will all this spending and money printing put the economy in when we eventually get out of the recession?

The scrappage scheme is an absolute travesty of a policy!

It's two main claims to being a fantastic policy is that it will stimulate the car industry as people will go out and buy new cars and that it will help the environment in that it will reduce pollution.

Neither are true.

The thing is that people can't actually afford to go out and buy new cars, even with a two grand cheque from the government. Most of us who where going out to buy new cars during the good years where doing it on credit!

As for the environment argument, I don't consider throwing perfectly fine working cars on the scrap to go and buy another car is very environmentally friendly. It's just more of the same thing from a government applying their old mentality to a new and devastating situation.

Consumerism in car production is not going to be any more environmentally friendly than it's been in the clothing industry. We can't afford economically and environmentally to be a use once and bin it economy.

Cameron responded quite cleverly to the 50% gimmick. Pointed to these increases in duties, which as someone without as much disposable income as some of our minsters of state, will be affected quite significantly.

Every. Penny. Counts. And this government is slamming us as hard as they can.

It's two main claims to being a fantastic policy is that it will stimulate the car industry as people will go out and buy new cars and that it will help the environment in that it will reduce pollution.

I don't like the protectionist tone aswell... "Throw away your dirty foreign vehicle and we'll use other people's money so you can buy a nice clean British one"

I'll keep my Rover, thanks.

"Labour governments always run out of other peoples' money."

Tory spokesmen should repeat this as many times as they can on the news today.

We need to let the 50p tax go for now. It's just another trap. We aren't in power so we can't stop it. The purpose is to encourage the mind-numbed folk who don't know economy from astrology to cheer (cue Comstock) in the sad belief that this will help rather than cripple the poor and to get us to shout about it, bringing the 'left' back "on side."

Don't play their game. There will be opportunity to address this once we've got the lunatics back in the asylum. Until then, softly softly. Point out that high taxation discourages wealth-creation, which reduces employment or all and leave it at that.

I am afraid my first reaction, to all the intentions that Alistair Darling was telling us was - PROVE IT!!

Even the news journalist said amongst other things, that this is a voters Budget (whats new), preparing for the next general election.

The sound-bites were all there, I am surprised Comstock is so susceptible!

The only excuse for promising hot air to millions of people unemployed, with not much chance of getting a job, and 'being economical with the truth' with the economic and debt statistics, is that perhaps, optimism, however hollowly based, might help to 'talk-up' the financial markets. More optimistic financial markets might help to produce jobs - in the long term, but not in the short term. Even Mr. Darling must know this!

"There are no quick fixes, there is no overnight solution".

Darling, Oh DEAR; there