Public Spending And Taxation In Britain
| Government or public spending makes up a large part of the economy in Britain. Of late, it has been seen that Prime Minister Gordon Brown is now favoring a taxation system in Britain which is quite similar to the EU. Less public spending and high taxation in Britain is, unfortunately, making Britain less competitive than its European rivals. |
However, the Treasury Department in Britain does not think so. They believe that an average family or average business in Britain is being taxed less than those in Germany, a country known for its government spending. In addition, the Department claims that public spending in proportion to the gross domestic product (GDP) is far less than compared to when Margret Thatcher was the prime minister.
In Britain, in 2007, public spending increased quite a bit, and this in turn increased the taxation as the government needed money for all the spending. Money was used for healthcare, education, lower income pensioners and families with children. However, there were budget deficits and this started to push up the public sector net debt once again.
Overall the scenario in Britain is rising taxation and falling public spending. The people are restless because although they are being taxed so highly, there is nothing to show for it. But Prime Minister Gordon Brown is hoping that the electorate realizes that the present government is doing its best to curb taxes while increasing government spending.
On the other hand, the Conservatives are promising to share the proceeds with the electorate. The envisage handing move back to the voters through tax cuts as the economy of the country increases.
More Articles :
|