As the WorldCup kicks off does the spending cuts also start

As the new Conservative / Liberal Democrat government start talking about saving money. Cutting the benefits for the poor and protecting the rich, how will this effect the everyday person.

Also American president Barack Obama starts his budget cutting - who really will be the looses.

Al the British government states it will remove or reduce child care benefits, maternity payments and child support - does this new government really care about the really people the voters.

As the price of living increases, as big business needs to increase its profits for its share holders, who are the people that are going to take the strain of the increase the very people who can't afford to.

As the new government protects the rich from any increase in tax or vat all the funding will have to come of the poor. Increasing VAT and maybe the the worse move any government could ever make at VAT onto food, how is this ever going to help the poorest family. The poorest family's will then require more state funding (which I don't think the government will pay) maybe the government should review the disability funding.

Who gets free bus passes (that we all pay for) who gets free prescriptions - Why do pregnant single mothers that work get penalised by the government.

If the government increased the basic tax rate by 2 p this would make the government billions of pounds, but the government is scarred of increasing taxes.

Written by Nathan Blakeley

VAT rise looms as coalition deal adds estimated £10bn to debt

King of Capital: Sandy Weill and the Making of CitigroupPlans raise fears of blow to already fragile consumer confidence and more upward pressure on inflation

There were warnings tonight that the government will be forced to hit consumers with a VAT hike to 20% if it is to reduce the country's gaping budget deficit and retain the confidence of jittery financial markets.


Such a rise could cost every household in Britain £425, but the government may have little choice given the state of the public finances, economists warned. The coalition's plans outlined so far on the deficit quickly came under City scrutiny, with one institution warning that in their current state they would actually worsen the country's budget position.

Credit Suisse said the measures announced would add close to £10bn per year to the deficit, contrasting with the incoming government's emphasis on the need for "a significantly accelerated reduction".

The easiest solution would be a VAT rise, Credit Suisse added, echoing other economists but raising fears of a blow to already fragile consumer confidence and more upward pressure on inflation.