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Brown set to delay Budget as 2,500 steel jobs go
Joe Murphy26.01.09
Gordon Brown is set to hold back the Budget until April as he ponders the scale of the next economic stimulus designed to lift Britain out of recession.
The delay to the spring tax and spending package, which is usually announced in March, emerged as steelmaker Corus confirmed that it is shedding 2,500 jobs in Britain.
The subsidiary of India's Tata Steel said more than 1,000 jobs would disappear in Wales and a further 1,400 jobs will go in the North.
In another day of jobs turmoil, Dutch electronics firm Philips and bank ING also announced job cuts that may include British staff.
Mr Brown and Chancellor Alistair Darling are said to be considering how much more of a fiscal stimulus may be needed and a Budget delay would give more time to assess Barack Obama's plans to create up to four million jobs with a boost worth about £586 billion.
Another reason for the Budget delay being cited by Government insiders is to give Mr Brown more time to focus on two major summits — the G20 of world economy leaders on 14 March and the Leaders' Summit being hosted in Britain on 2 April, which will mark President Obama's first visit to Britain.
Today, the Prime Minister claimed the economic crisis was “the difficult birth-pangs of a new global order”. In a speech to foreign journalists in London, Mr Brown pre-empted this week's Davos summit of leading economies, by warning against protectionist policies by individual countries. “We could allow this crisis to start a retreat from globalisation,” he said. “As some want, we could close our markets — for capital, financial services, trade and for labour — and therefore reduce the risks of globalisation. But that would reduce global growth, deny us the benefits of global trade and confine millions to global poverty.”
Government officials stressed that Mr Brown was not proposing a global super-regulator. Instead he wants better co-ordination of the patchwork of national regulators.
Richard Lambert, director-general of the CBI, also painted an optimistic picture of the future, saying Britons should cheer up because the country was not in danger of going bust.
Welcoming the Government's attempts to stabilise the banking system, he said: “None of this is going to stop the recession in its tracks, or halt a painful rise in unemployment and lost output. But the measures will be enough to prevent something much worse — provided we don't allow ourselves to be swept away by the gloomsters.”
Treasury sources denied that the Chancellor was already drafting a further economic stimulus package for the Budget. Officials said no decisions had been taken because the vital process of writing new economic forecasts was not due to begin until next week.
City experts are united in predicting that Mr Darling will have to sharply downgrade his autumn forecasts and expectations are mounting that there may be a fresh stimulus, probably echoing Mr Obama's plans to use public works and “green” investment to support jobs.
Business Secretary Lord Mandelson, meanwhile, was today in talks with the Treasury to finalise a new package of help for the car industry, expected to include help for people and firms who want to borrow money to buy vehicles.
In a rival speech to the Prime Minister's, shadow chancellor George Osborne promised tougher control over Whitehall spending and waste. Senior civil servants would be contractually bound to deliver value for money.
Promising a “new culture of financial discipline”, he said spending would be more transparent and waste — such as the bungled NHS computer system — would be investigated more effectively.
Reader views (58)
Oooh, let's just not have a budget at all .... just like not having an election!
- Marianne, SW France
Putting VAT down to 15% was another of Gordons deceitful moves.When it goes back up at the end of the year he will claim it has to be brought in line with other European Countries with a much higher rate and we will find ourselves paying 19% to 20%
- Tony S, Hull E Yorkshire
I said that if Gordon Brown became PM I would leave the country.
He did & I left last summer, glad I did otherwise I would have gone mad listening to this "New World Order" rubbish.
The man is clearly mad, and has ruined (or is in the process of ruining) the country.
I hope it won't take violence to get rid of him.
Good Luck!
- Dave Bolton, Stockholm
Why is their no vote of confidence?? It is of the utmost importance that the Conservatives can clear this mess up. They have the economic capabilities and the financial acumen. I do not like everything about the Conservatives but this is needed I think.
- Pat, London
He can't give us anything back, because we haven't any money. He can't put taxes up or they'd be rioting on the streets. No wonder he's delayed it. Do what I'm going to do. Don't vote for any of the major 3 next time (if we ever get another election that is!!), vote for someone else. They're all corrupt and in it to feather their own nests. It sure as hell can't get any worse whoever is voted in next time, but it certainly won't be Labour. If that happened, there wouldn't be enough flights for all of us to leave the country in one mass exodus! I think we need a huge march to 10DS and show Gordo the door.
- Sue, Orpington, Kent
Good to see that Gordon's on the run at last!
- Dave, cumbria
' ... while he ponders ...'? Don't be daft. The IMF have had his call on hold for the past few weeks and he can't balance the books!
- Mart, Henley
I think his budget is broken again. And again HE is not losing money... but I feel I and my FELLOW BRiTISH TAXPAYER have!!!!!!!!!!!!!
- Peteo, Islington, London
Surely this Zimbabwe situation cannot continue in Britain? The man should have left many months ago. Dear Queen can you not do something????????
- Jackie, Hampstead, London
Look at the picture. What a fool. Time to go Gorden!! Really!!!
- Steveo, London
So who's the "do nothing party" now?
- Dave, London England
Delay the budget, delay the toxic waste in the banks, delay the election and by decree delay Armageddon....But hey, I got 4 people on horses outside my home. Now I know why I didnt vote at the last election and why I wont have the where for why to vote at the next one. I just lost the will to live because I dont live in a democracy anymore.
- Bondy, london
What is that Bean Brown doing?!??
- Jonathan, London NW1
Brown delays everything. Good speeches and lots of plans but awful economics and no sense for financial markets. Learn this Crash Gordon: tax leads only to misery not growth!
- Georgie, Islington, London
I thought the budget content and timing were prerogative of the chancellor. Brown never confided in Blair, so now we know, Brown is not leading the country, he continues to meddle with the economy and that is the weak currency and weak confidence (actually, it appears no confidence from the country).
Nobody is at the helm, and all are in the engine room to work out how to keep power to the engine! Pity Brown forgot about the fuel whilst there was plenty, preferring to proceed at breakneck speed passed fuel ports, so we are shortly going to run out and onto the rocks, unless he surrenders control and allows jettisoning of a load of dead weight employees/appointees, who uses up excessive fuel (salary/fees and pensions) and contribute little or nothing.
- Hugh, Middx
As they said with the last Labour Goverment will the last person leaving Please turn the lights off.
- Bill Williams, Bagnoles France
Brian from Wiltshire - I find it really frustrating that there are still people around like you who seem to believe Brown when he says it's all the Banks fault. We all know the banks were irresponsible and must never be allowed to act that way in the future. However, if you really think "Brown & his cronies" had nothing to do with the current state of affairs then you really are living in the same cloud cuckoo land that Blair and darling seem to be living in (you deserve each other). Both Conservatives & Lib Dems have been calling for re-financing of the banks and a loan guarantee scheme, which eventually Gordon has done. The problem is that he delayed implementing these actions, and then failed to implement them properly. For example - in the first £37bn re-capitalisation of the banks Gordon/Alistair didn't know that at the very same time the FSA was increasing the level of capital reserves the banks were required to hold. Result - the capital injection went straight into the banks reserves and not to increased lending. Only an idiot like Brown would have allowed that to happen, and only idiots like you seem to believe him when he says it's all a global problem and nothing to do with him.
- Malcolm, London
A vote of No Confidence please!
- Sos, Oxfordshire
Lots of talk about hitting the streets to protest. I agree, the sooner the better, whilst we still have a Country left.
- Roger, Surrey
Look at that joker Crash Gordon!
- Peteo, Primrose Hill, London
April would be a nice time for an election and to get rid of Mr. Bean Brown! Iceland is going to have a change in governement, the USA just had one. They will be in a better position than Britain!
- Peteo, Primrose Hill, London
This country must be the laughing stock of the world, we have a collection of criminally inept fools in charge of us. All we need now is for the Anointed One to delay the next election in "the national interest" for our descent into Zimbabwean incompetence to be complete.
- Albert Hall, Carshalton, England
Mr. Bean Brown is a very bad economist, a financial nothing and also a poor leader. A real leader would have long admitted defeat and given an early chance to the Conservatives to sort out the mess after 12 years of Nu Labor. I fail to see why not everyone would trust Conservatives to deliver a stronger economy?! No more Zimbabwe in Britain: election!!
- Johnny, London NW1
"... Richard Lambert urged Britons to cheer up because the country was not in danger of going bust."
Easy for him to talk so glibly given his enormous pay packet. Only individuals go bust because of the mistakes of businesses and banks, but at the end of the day it is the tax payer who has to pay for the mistakes made by idiots like him.
- Frank, Home Counties, England
Someone said 'what's the point of an election, there is no alternative' ... well if that's true we might as well commit mass suicide. The lot in charge now could not organise a drink in a brewery - the level of incompetence is simply staggering. Instead of investing in start-up (green even) technology companies over the last 10 years, this government has invested in diversity officers. I saw an advert the other day for someone to encourage 'street football' in one of our inner cities. They will be paid 20k of our money for this vital job. Can our economy afford this sort of thing at the moment.
You have a choice now.
New Labour: more of the same ... more debt, more taxes, more waste, more public sector jobs.
Conservative: inheriting massive debts - will slowly reduce the size and cost of the public sector and get the economy back on its feet again.
The choice becomes more stark by the day. Another year of Gordon Brown and this country will be a banana republic. Which will it be - a slump lasting 10 years or hyperinflation?
What is Brown going to do when other countries stop buying government debt? PUT INTEREST RATES UP!
Heaven preserve us from this FOOL!
- Mike Wilson, Winchester, UK
I am on holiday at the moment but have been in contact with my colleagues at Rotherham. My department will be disbanded and everyone in my department is at risk.
Its odd that these redundancies are only happening here - maybe its something to do with the Dutch government doing something about it, whereas our government just want to sit on their hands and let market forces decide.
- Anonymous, Rotherham
Rob from Letchworth - you are correct in your observation about unelected 'leaders'.
However, since when have elected politicians from the current administration been accountable to the British public?
The reason the govt uses unelected ministers is because none of the elected MPs are capable enough to get us out of this mess. How many members of the cabinet actually have experience in business? They all previously worked in media, legal, academic, research or are career politicians. That's why we are in a mess.
- Vj, London, UK
Shopping at your local multiple retailer is as likely to cost you your job as anything else. The Government must act now to reduce the power that they have over brand owners and suppliers..... and the clearly 'unfair' share of the product margin which the multiple retailer enjoys....why must we sell at cost for them to make 30%? How can suppliers invest in their businesses?
- Simon, Batley, West Yorkshire
Brian, wiltshire - are you part of the scheme to provide jobs via extra Government spending? This is the only explanation I could find for your comment about this Government not being partly responsible for what is happening. How can someone who has had his hands on the purse strings deny any responsibility?
- Dan, Manchester
What's the point of a 'General Election' unless there's a credible alternative to vote for? A pox on all the 'Parties'; we should be able to vote for people with real jobs, and then leave it to HM's advisers to work out who can 'form a government'.
- Steve, London, England
Is there anything left to budget with ?
- Andy, Crowborough UK
I have been out of this country for over 30years running businesses in USA, China,Australia,and because of retirement I returned in 2007.These last 2 years have been what I call a nightmare owing to the fact that this Country(UK)is nohing like it was when I left.The Govt. has no idea how to run this Country for the very simple fact that not one of them knows how to run a business.
Yes,other countries are having a hard time at this moment,but, and here is the difference their Govt"s are dealing with their own problems internally,Brown keeps on about World Economics,and thinks he is the Messiah to the World Financial Markets.Think again Mr Brown you are a laughing stock to many Countries,and more to the point business men in the UK are laughing at your aptitude as to how you handle business,I have heard you first hand, and your greatest failing is you NEVER LISTEN to other people's advise,you always do it your way no matter what.It is time to wake up Mr Brown and listen to the people who have their finger on the business economy on an hourly basis,you would definatley learn a great deal.
- Repatriated, London
It is very clear that UK has been misgoverned not just economically - we are the poorest prepared country of OECD - fiscally - taxload has brought this country to its knees - but also socially. We have a poorly prepared and barely literate young generation coming to the labour market. You have to wonder where the taxes are going to come from now. Crash Gordon has to go!
- Phil, Islington, London
The banks, and that means usa and europe ,are the cause of this crunch not Brown and his cronies, but all everyone here can say is "You dont know ewhat your doing" which implies you do know what you are doing , so lets hear it lets have your economic plan to rescue the world.
- Brian, wiltshire
The taxpaying public needs to riot in the streets to secure a general election to get McBean and his useless government out of office.
They are without shame and, have ruined this country.
- Dee Jay, Fleet Hampshire
Rob, Letchworth
Don't be surprised, we have been governed by the Politiboro of Milbank for many years now.
- Bj, London
Don't forget that this is the same Gordon Brown who, as Chancellor, kept moving the dates for the "economic cycle" in order to make his Golden Rule "fit". So no real surprise that when faced with the home truth that his (& Darlings) earlier econonomic forecasts proved to be wrong, and that the steps they took in the pre-budget report have failed, rather than front up to the British puble he simply moves another date back to "fit" his own needs.
- Malcolm, London
I think the phrase they shout from the football terraces is " you dont know what youre doing , you dont know what your doing , repeats " Please put the country of it is misery and vote these comedians out !!!!!
- Chris, Croydon,UK.
the government should start giving us our money back though proper tax cuts - like income tax and council tax; and stop giving it to the banks. its clear the bacnks have been incompetently run over the last few years, and they should not be rewarded for their failure. it would be healthy to let some of them go bus, providing people's funds are safe.
- Josh, london
In the words of Status Quo: "Down Brown, deeper and down".
- Bob, Cheam
I am trying the same trick with my Mortgage Payments, Council Tax, Income Tax and TV License...'hello, i would like to delay my payments for a month or two while i try a new economic stimulus package'. Yep, that'll work....NOT!!!!
- Gary, amersham
I must agree with Michael,London, I have never known a worse Government and the Foreign Secretary, Home Secretary and Prime Minister must rank as certainly the poorest holders of these posts that I can remember. As for the present Chancellor, his predecessor just pips him for the title of wors. If this is the pick of Labours talent, God Help Us.
- Ian Glen., Durham. England.
Hopefully they will both be out of office before April. The electorate should take to the streets and force an immediate general election.
- R.F., Yorks, UK
In other words: it's so bad they don't know how to sweeten it for us.
- Roz, Chamonix, France
They are delaying the budget because they haven't a clue what to do.
- Ian, London
The best stimulus to the British economy Gord (help us) Brown can give is to immediately call a General Election. The country has no confidence in him and the international investors have no confidence in him.
Boom & bust Brown caused the UK's problem by using CPI that does noy include house price inflation instead of RPI which has house price inflation included. Therefore interest rates were set too low to control house prices.
The Great Leader boom & bust Gord (help us) Brown has presided over along with mendacity Blair the worst Government in British history.
- Joe, Thornton Heath
Their decision is very understandable as they obviously do not want or wish to make any more financial disasters.
- Ed, london
Or perhaps the reason the budget is being pushed back is so that the new Chancellor has time to prepare. Darling is going to quit.
- Ben, Nottingham
Delayed Budget, cancelled promise on the European constitution ? delayed election? It's all the same for this Government. They just do not want us to have a choice or know anything that is going on. Has there been a worse Government since the last War ended in 1945 ? Has there ever been a poorer Home Secretary,Foreign Secretary or Prime Minister ? If so would someone please tell me. You will notice that I have not said worst Chancellor because the answer is Darling is not (for obvious reasons).
- Michael, London
I think that Cromwell had it right!
“I command ye, therefore, upon the peril of your lives, to depart immediately out of this place! Take away that shining bauble there, and lock up the doors. You have sat here too long for the good you do. In the name of God, go!”
A version of Oliver Cromwell's speech dismissing Parliament
20 April 1653
- Keith Hedges, Wheatley , Oxford
The govt would like us to believe that a low value pound would make our exports more desirable. How does that view stand up when the new American President will probably decree that the millions of dollar aid he gives to US car makers and others may onlyy be spent on purchases made from American suppliers in the USA.
Alex Pomeroy
- Alex Pomeroy, london
Call an Election ?
But who else has the proved ability to run the economy.
Is there no hope for us ?
- Bernard Parke, GUILDFORD
Any excuse
- Richard, France
Its delayed because they have no idea what is happening,no idea how to deal with it and they cannot admit that they are part of the problem.
OUT OF THEIR DEPTH IN A PUDDLE would be an apt description of this inept government.
- Nigel, wimbledon
When does Gordon go to hospital for knee surgery, he has had so many knee jerk reactions they must be worn out. His VAT cut Is a farce, Poundland still sells it items for a pound, My local Council has not reduced its charges, so who is kiding who. If darling Darling wants to save money for investment, why not do what just about every private sector employer is now having to do in respect of salary pensions, and close the ridiculus, bankrupt Public Sector pension schemes that I and no one else can afford, and replace them with more realistic contributory pensions. How about that to balance his budget. This is not said from envy, but from the point of view that I work with 40+ other people who can't afford any sort of pension contribution in these hard times, but have to, through the rating system, contribute to the Public Sectors overblown benefits.
- Alan, carlisle uk
Gotta say I'm starting to feel like the country is being run by an unelected 'cabal'.
PM - Unelected
Business Secretary - Lord Mandelson - unelected
Trade Minister - Baroness Vadera - unelected
Banking Minister - Lord Moynes - unelected
At a time when trade and finance is more important than ever, and a fortune in taxpayers money is being spent, the people in these roles dont have to be accountable to the electorate and there is no democratic sanction on them.
Surely it would be best if all Cabinet members and govt ministers were democratically elected ie at least the taxpayers, whose money they are spending, had at least some say in them being in these positions.
- Rob, Letchworth
Can this idiot please please please call a general election so that someone who does know what they are doing can take over and clear up the mess!
- Steve Freud, London
Today - delayed budget. What next - delayed election.
Regime change in Broken Britain is needed, and needed fast. Brown should not be concerning himself with lecturing the world on global issues; he was unable to properly manage the UK economy despite a golden legacy; he is not an elected leader, he does not have the confidence of industry, commerce or the general population. His whole ethos is based upon meddling, over-regulation, punitive stealth taxation, theft of public assets and corruption at the very heart of his so-called administration.
This incompetent buffoon speaks for no-one but himself and NuLab vested interests. It is a great shame that he and his cohorts do not have the moral courage to follow the example of the Icelandic government and resign, in order to allow a renewal process led by consent rather than the present heavy-handed enforcement that characterises today's Britain.
- Ex-Pat David, Cape Town, South Africa
