Tax & Spend Isn't Working

The attacks on Gordon Brown's high taxation, high spending polices are becoming more and more frequent on this website. It it not the intention of picking losers to target individuals nor is it partisan. However, it is of course more likely that attacks will be made towards the Government as they are the ones in power actually making and implementing policy. It is also not without good reason that this high level of scrutiny and criticism is directed at the Treasury at the moment. The International Monetary Fund share the view that Brown's policies are unsustainable and have issued a warning - one that Mr Brown will do well to heed.

The IMF has urged the Chancellor to cut spending and to make "disciplined choices" in this summer's Comprehensive Spending Review. Taxes are at record levels for 20 years. It calculated that the tax-to-Gross Domestic Product ratio - a key measure of the tax burden - was now, at almost 38 per cent, the level it hit in the mid-1980s. The IMF have warned against further tax rises and strongly advise cuts in spending. The report warns "-Further increases in tax rates would risk adversely affecting incentives to work and invest-". The heaviest criticism in the report was for Brown's tax and spend policies - It warned that Britain had witnessed the "most aggressive fiscal expansion of any G7 country".

And to back up the fears that high taxes are weighing heavily on families and enterprise, the Reform think tank has also warned that middle income families are the biggest victims of Mr Brown's taxes, while the CBI said tax levels were now so high that Britain was losing its competitiveness.

Will Gordon listen though, that is the biggest fear. He appears to be growing in arrogance as his long walk to No.10 nears its end. He gives his last budget in a couple weeks and then, he hopes, on to bigger things. What will budget hold for us? I doubt very much it will involve tax cuts. The CSR in the summer will be the big test - a comprehensive review of all the Government departments. Surely there will massive savings here? But will that reflect on tax cuts to the everyday workers and businesses? I doubt it also.

A Treasury spokesman has responded to the report by fobbing us off with non-nonsensical rubbish "-The IMF highlight in their statement, macro-economic performance in the UK remains impressive, while our openness and flexibility continue to position the United Kingdom to benefit from the opportunities of globalisation and absorb shocks-." Sorry? How does that solve the problems of high tax and spend policies? It seems every corner of Britain is now overburdened and fed up with Brown's high taxes, high spending and ineffective reforms and investments on public services. Why can't he see it as well?