Downing Street Says » Economy/Recession

Asked to explain the Prime Minister s comments to Andrew Marr yesterday that only 1 billion of the Government s 18 billion package had been spent, the PMS said that the VAT cost of 12.5 billion for 13 months, which was around 1 billion a month, had already come into effect in December. The other elements of the PBR package had not yet come into effect; that included the 145 for basic rate taxpayers, which would come into effect in April. There was also 3 billion of capital spending which was being brought forward into the 2009/10 financial year, which had not yet come into effect. As of the end of December, the only measure that had come into effect was the VAT cut. On 1 January this year we also brought forward the increase in child benefit and the special payment for pensioners. We still had significant measures to come into effect, including the bringing forward of capital spending and the extra help for basic rate taxpayers.

Put that the Prime Minister had given the impression that he did not know when the recession would end but that the Treasury had said it would end in the middle of next year, the PMS said that there was no inconsistency between the two; the Treasury had to make forecasts and publish those forecasts by law twice a year, therefore the Treasury had to take a specific view. However, as the Treasury and everyone else would acknowledge, these were very uncertain times and, as the Prime Minister said yesterday, a lot depended on international action.

4 Comments »

Our country was also hit hard by the Economic Recession. At least we are seeing some signs of economic recovery now. I hope that we could recover soon from this recession.
Comment by Janet Reyen — 8 Dec 2009 on 10:31 am | Link
Our country had been so much affected by this Economic Recession. there are lots of job cuts and company shutdowns. We are seeing some signs of economic recovery right now and we hope that it would continue.
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Comment by Harold — 29 Dec 2009 on 6:50 am | Link
I think we are also seeing some signs of recovery from the Economic Recession. Of course, we have no idea of how long it will take to completely recover, but some say it’s going to be longer than for the other recessions in decades. I also scanned an article yesterday that said business owners need a new set of tactics to do well during recovery.
Comment by | Acneguy — 5 Jan 2010 on 4:36 pm | Link
Our home business was really affected by the Economic recession, we have to cut jobs just to cover up our losses. fortunately, we have already recovered. *
Comment by Jennifer Powell — 28 Apr 2010 on 1:53 pm | Link

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» Monday, January 5, 2009

Economy/Recession

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