Blair’s government is socialist, so it’s not surprising that their focus is taxing and spending. What is surprising is that this year the tax load on the Brits will exceed that paid by the sclerotic Germans. So the poor Brits can expect their economic performance to converge with Germany’s – minimal growth and 10% unemployment.
BRITAIN’S tax burden will surge ahead of Germany’s for the first time in a generation this year. It signals the end of an era for the UK as it decisively turns its back on economic liberalism, a report reveals this weekend.
The news, which confirms that Chancellor Gordon Brown has Europeanised the British economy by stealth through a massive programme of extra public spending and higher taxes, was condemned by top City of London economists this weekend. They said higher taxes will lead to an inevitable collapse in Britain’s economic performance, a rise in unemployment and a decline in foreign direct investment.
The UK fiscal burden – mainly taxes but also fees and other government income – will hit 42.4% of gross domestic product (GDP) this year, according to an analysis of Organisation for Economic Cooperation and Development figures published this weekend by Bank of America. By contrast, the fiscal burden in Germany will fall to 42.1% of GDP, less than Britain’s for the first time in recent history. Britain will also outspend Germany from next year, the OECD figures also show. In 2007, German government expenditure will fall to 45% of GDP, while British public spending will hit a new high of 45.7% of GDP.
There’s no relief in sight for the suffering Brits – the opposition Tories are now led by an opportunistic socialist.