[Ignitionnet]

Originally Posted by budwieser

And the Tax rises do cut very deeply mate for the average family.

Well the groups advocated / are delivering the following as deficit reduction measures:

Coalition 23% tax rises, 77% public spending cuts.
Conservatives pre-coalition 20% tax rises, 80% cuts.
Liberal Democrats 30% tax rises, 70% cuts.
Labour 33% tax rises, 67% cuts per Gordon Brown or 40% tax rises, 60% cuts per Alan Johnson or 50% tax rises, 50% cuts per Ed Milliband / Ed Balls
Greens 100% tax rises, 0% cuts

The IFS estimates that the last big fiscal tightening undertaken by a Conservative government, which took place in the early 1990s, was split 50-50 between tax and spending measures. But an unpublished Treasury paper that drew on studies of more than 70 “fiscal consolidations” across 20 countries since 1974 concluded that successful deficit reductions normally relied on 80 per cent spending cuts and 20 per cent tax rises.

---------- Post added at 12:30 ---------- Previous post was at 12:28 ----------

Originally Posted by danielf

Yeah but surely in cash terms the cuts are considerably larger than the VAT/duty rise? And while cuts may not actually kick in till later the effects are already felt as the public sector prepares for them.

Of course they are, they have to be, however they are happening over a much longer period than the front-loaded tax increases and as noted haven't kicked in yet.

Some effects are inevitably going to be felt already.

However that goes into the realms of supposition somewhat.

---------- Post added at 12:31 ---------- Previous post was at 12:30 ----------

Originally Posted by Chrysalis

Is petrol really nearly £1.50 litre now?

http://www.petrolprices.com/

answered my own question.

so the fake inflation figures thing still goes on then, another essential that has shot up beyond wage levels.

Tax rises + messing with money supply = ouch.