UK Chancellor George Osborne's 2014 Budget Speech Salient Points

From an economic growth point of view, we think that the Tories do a much better job than Labour.  Alright, we are partisan.  We'd prefer the Tories running fiscal policy over Labour anytime.

Here are salient points from the Budget Speech.  The full speech is available here.

UK Chancellor George Osborne (i.e. UK's Minister for Finance)

Economic Growth Forecasts
2014 - 2.7%
2015 - 2.3%
2016 and 2017 - 2.6%

UK is growing faster than Germany, faster than Japan, faster than the US - in fact there is no major advanced economy in the world growing faster than Britain today.

Employment Forecasts 
Pace of net job creation under this government has been three times faster than in any other recovery on record.  1.3 million more people in work.  Latest figures show a staggering 24% fall in the claimant count in just one year, and the fastest fall in the youth claimant count since 1997.

Unemployment down from the 8% we inherited to just over 5%.

Fiscal Policy 
Taken difficult decisions.  Before we came to office, the deficit was 11%!  This year, they say it will be 6.6%.  Next year, 5.5% - down a half.  Then it will fall to 4.2%, 2.4% and reach 0.8% in 2017-18.

In 2018-19, they are forecasting no deficit at all - instead, at plus 0.2%, a small surplus.

Faster growth alone will not balance the books.  Securing Britain's economic future means there will have ot be more hard decisions; more cuts.

Britain was borrowing £157 bn a year before we came to office.  This year we expect to borrow £108 bn... In 2018-19, we won't be borrowing at all.  We will have a small surplus.

Debt is lower.  And the biggest single saving of all is £42bn reduction in interest payments we will have ot make on that debt.  Saving every family in the nation the equivalent of almost £2,000.

Money that was going to creditors around the world, now going to pay for the NHS and other public services.

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Our Views 

UK is already viewed by many developed countries as a good example of a developed Western country that can get its finances under control.  Yet, look at its debt and deficits!  Unthinkable from a Singaporean viewpoint, but easy to happen.  Just vote in irresponsible Governments that spend and spend.

All that said, UK Government is making very hard but good decisions, to put UK back on the right track. We are bullish on the UK economy.   Hopefully, the Tories win the 2015 UK General Elections.