UK pledges ‘prosperity’ in pre-election budget
LONDON: Britain’s government vowed to move from austerity to prosperity in a key pre-election budget yesterday, describing the looming national vote as a “critical choice” between chaos or economic success. Finance Minister George Osborne also hiked his 2015 economic growth forecast to 2.5 percent in the coalition’s final budget before May’s general election, up from a prior estimate of 2.4 percent, and cut his deficit forecasts for the next three years. “This is a budget that takes Britain one more step on the road from austerity to prosperity,” added Chancellor of the Exchequer Osborne, a key member of Prime Minister David Cameron’s Conservative party.
Gross domestic product (GDP) was expected to expand by 2.3 percent in both 2016 and 2017, Osborne said. “Today, I report on a Britain that is growing, creating jobs and paying its way,” he told lawmakers. “We took difficult decisions in the teeth of opposition and it worked-Britain is walking tall again.” In a wide-ranging announcement, Osborne unveiled a tax on profits aimed at cracking down on multinationals that shift profits offshore. There were also perks for pensioners, who will be allowed to swap regular retirement incomes for cash lump sums. In reaction to slumping world oil prices, he cancelled a planned hike on fuel duty while announcing £1.3 billion (1.8 billion euros, $1.9 billion) of support for Britain’s North Sea oil industry.
No short term gimmicks
The centre-right Conservatives and their junior coalition partners the Liberal Democrats are hoping to capitalize on their stewardship of the economy, which has staged a solid recovery since it won power in 2010. Britain’s deficit was set to reach 4.0 percent of GDP in 2015/2016, falling further until 2018/2019 when it was forecast to stand at a surplus of 0.2 percent. “Five years ago the deficit was out of control. Today as a share of national income it is down by more than a half,” Osborne told lawmakers. — AFP