As the polls suggested, there was no clear victor from Thursday’s general election, and the parties will have to do deals if Britain is to be governed in the national interest.
A Conservative government supported by the Lib Dems looks the most likely option, which means we may still be on track for an austerity Budget in about 50 days’ time.
In any event, the turmoil in Europe, roller-coaster share prices, tumbling gilts and a weakening pound would have demanded any new government sought to avert a UK economic crisis with a tough emergency budget to reassure overseas investors.
So brace yourself for tax increases which were never mentioned in election manifestos, as well as cuts to the welfare state. But you may be able to mitigate some of the worst impacts by acting quickly. ......
......Invest abroad
With the pound weak, and growth sluggish in the UK, Investors should consider spreading their investments to economies with the biggest growth prospects. Alan Steel, of Alan Steel Asset Management, said: “When you look at emerging economies like India, China and Brazil, you have a population which is hungry for higher living standards and prepared to work hard to achieve them, governments with low levels of debt, and great demographics in terms of a young workforce. They offer great prospect for growth free of the problems associated with older economies.” ......
Quote courtesy of Scotland on Sunday
Sunday 9 May 2010
