Fairy dust Budget 2011 is pure Disney
Currencies Direct March 23rd 2011 - 2 minute read
Responding to the Budget, Mark O'Sullivan, Director of Dealing at international money transfer specialist Currencies Direct, said: "Sterling remains unchanged in the currency markets – following the no show-stopper Budget. It appears the world's debt markets continue to support the Government's austerity measures – so long as growth remains within the government targets. However, the Chancellor could find that the world markets desert him and lose confidence in him. The UK growth and public borrowing are not in line with the already over-optimistic projections by the OBR. If inflation stays persistently high, the credibility of the Bank of England may start to come into question – and the UK may find itself in a position where both the Government and Bank of England's credibility will come into question.
"Inflation falling back to 2.5% is over-optimistic, given recent commodity price increases and the surge in oil prices – which are not taken into account in the current inflation rate as yet. The 1p cut in fuel looks at first glance to be putting money into people's pockets, but will quickly evaporate as the cost of living continues to rise."
AS IT HAPPENED
12.38pm… Chancellor underlines fact UK still has the confidence of world's debt markets – when it comes to Government borrowing
12.41… OBR inflation target for 2012 is far too optimistic!
12.50… At a time when Ireland is being punished by the Eurozone, the UK has the flexibility to reduce its corporation tax down to 23% to encourage growth
12.57… Non-doms to be given tax relief on UK investments
12.59… Money laundering regulations are to be made less of a burden
13.00… If interest rates rise, this provides a safety net for homeowners who may face unemployment
13.08… £2 billion for green investment bank – could this be better allocated elsewhere?
13.13… 45 minutes into Budget, we're still waiting for the showstopper…!
13.29… Fuel duty cut by 1p a litre