The Budget 2009

Last week Ally asked “Owen, what do you expect to see in the budget next week and what would you like to see.”

Well, all the noise is that the Chancellor, Alistair Darling, will focus on job creation (including support for Jobcentres etc) and stimulating the housing market. I also suspect that there will be at least the start of some fairly tough measures on tax levels for the well off. What would I like to see? Well my simple view is that the economy will only start to really improve when investors of all kinds believe that the UK is a good place to invest in.

At the moment, they do not because so far at least, our Government believes that it can borrow its way out of trouble. All my experience tells me that if you are already borrowing too much, you cannot borrow your way out of debt – whether you are a Government, a business or an individual – so I hope the focus will be on reducing Government borrowing and Government debt to build some more fundamental confidence in UK PLC. That way, both businesses and individuals will feel more confident about investing for the future.

Ask Owen is about providing impartial financial advice for those concerned about managing their money. The country is suffering a serious economic decline and with people concerned about increasing costs of living and fuel bills, teamed with worries about job losses and house repossessions, it is a daunting time; so if you have a question to Owen fill in the comment box below and he will answer.