Feeds

Darling promises IT cuts, years of pain

IT cuts ahoy, windfall tax for bankers

Intelligent flash storage arrays

Chancellor of the Exchequer Alistair Darling has promised spending cuts in order to try and rein in rampant government spending, helped by a windfall tax on bankers' bonuses.

In his last pre-budget report before the election, Darling promised £5bn in cuts from technology projects, outsourcing prison management and reforming legal aid. He blurted out plans to crimp the NHS' IT upgrade by £600m at the weekend, leaving us to ponder where the other £4.5bn of cuts are likely to come from.

The Chancellor needs to at least outline cuts because capital markets are rapidly losing confidence in the country's ability to pay back its enormous debts.

But he is also fearful of pulling the plug on the first signs of economic recovery by slashing spending too quickly.

Darling claimed government action had already reduced the impact of the recession on British families. He said investment in technology and bio-tech industries would help the recovery and avoid a lost generation of unemployed young people. Corporate income from UK patents will be taxed at ten per cent.

The Chancellor said global confidence was growing but remained fragile, so still needed supporting by government. But he confirmed that the temporary VAT cuts made last year will end on 1 January and go back to 17.5 per cent.

Smaller firms will see the tax deferment scheme extended for at least another year.

He expects unemployment to continue to grow for some time, but the guarantee of work or training for young people will also be extended for another year.

Pensioners get a 2.5 per cent rise in their state pension from April next year.

Darling is sticking with predictions of a return to growth in the fourth quarter, not enough to offset a 4.75 per cent shrinking of the UK economy this year, and 3.5 per cent growth in 2011.

The pre-Budget report got a tinge of green from a boiler scrappage scheme, like the cash-for-bangers money, for 125,000 old boilers.

Income from selling green electricity back to the National Grid will be tax-free.

So where is all this money coming from?

He has cut the expected cost of the bank bailout from £50bn to £10bn. He confirmed the 50p per landline tax to fund next generation broadband networks and better rural access.

Public borrowing is higher than expected at £178bn this year, but will dip slightly to £176bn next year.

After last year's £80bn losses in the banking sector, Darling said any that any institutions which insists on paying substantial bonuses would face a 50 per cent tax on payments of over £25,000, payable by the bank. He expects this to bring in £500m.

And there are those £5bn of cuts. ®

Internet Security Threat Report 2014

More from The Register

next story
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Spies, avert eyes! Tim Berners-Lee demands a UK digital bill of rights
Lobbies tetchy MPs 'to end indiscriminate online surveillance'
How the FLAC do I tell MP3s from lossless audio?
Can you hear the difference? Can anyone?
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.