Having promised a budget for growth, Mr. Osbourne gave the country an indication that his stewardship of the economy will lack innovative thinking. Taking from Oil Companies will give concern to other industries that future profits may be expropriated and then giving to the consumer via lowering petrol duty is shamefully populist. Mr. Snow on Channel 4 news skilfully questioned Danny Alexander and pointed out that higher petrol prices would have forced the population to adapt to higher energy prices; a market mechanism for perhaps considering ways to embrace new sources of energy. Unfortunately the coalition are interventionist at heart despite the rhetoric.
Of note was the reference to currencies. Mr. Osbourne made clear that the Bank would be building reserves; a clear statement that Sterling will be sold to complement the low interest rates.
The comment that it was important that G7 buys yen to support the Japanese economy was the highlight of a dull budget. Was that a faux pas or a Freudian Slip?
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