What is the Current UK budget Deficit problem and what is the Emergency Budget?
The deficit is due to the history of government borrowing in order to balance past budgets. In other words the amount of money collected by taxation etc is insufficient to cover all the national expenses. Recently, with the changed UK government it has been decided to reduce this deficit and for the government to return some of what it has borrowed and not to borrow any more. This claim could not psychologically be accepted without calling it an “emergency” although all politics is actually based on such situations so it is nothing new. The effect on local services and government subsidies is going to be a dissaster of an even worse kind that what the interest on past borrowing has done. What is really needed is to tax something new which is mostly associated with how the rich stay rich and make their money, but being Conservatives the present government will find it very hard to meet this criterion and stay in power from their own supporters. They should tax land values, but this prop
