Prime Minister Puts Jobs Ahead Of Golden Rule

Gordon Brown recently made a stunning announcement declaring that he has little to no power to stop the waves of job cuts. This announcements comes as he is trying to encourage a large amount of Government borrowing to try and pull the country out of the crisis.

This statement was endorsed by the Prime Minister as a responsible way to handle the crisis. This move marks a shift to stop the fight against the wave of redundancy firings and instead attempt to encourage last minute growth.

The Treasury is ready and waiting for the coming overdraft. Estimates already anticipate a £100 billion deficit as tax revenues falter and more money is spent on welfare costs as employment continues to decline.

Brown has tried to defend his decision as the responsible recourse to an exceptional financial crisis. He has also justified the position by stating that at least some of the spending would cause long-term improvements to infrastructure, and that the borrowing wouldn't be necessary once tax revenues increased.

There are some serious doubts to this plan though. Brown's rush to borrow could cause some financial pain in the future as more taxes are needed to pay off the debt. It could also cause great alarm in the wounded financial sector as Brown's antics reduce overall confidence.

There are other concerns that it is unavoidable though. George Osbourne, Shadow Chancellor, claims that Brown is just doing what has to be done for the situation. There is already an overdraft on the budget which makes more borrowing a necessity, not a set plan.

More details should be released as Chancellor Alistair Darling gives the Pre-Budge Report on Wednesday on just how the government will manage the overdraft. It's expected that their "golden rule" concerning borrowing will have to undergo a revision, which is slightly odd considering that Brown imposed the rule during his time as Chancellor. The report should give a better idea on what the targets will be for borrowing as the economy recovers. There are also some rumors that the National Audit Office could step in and supervise the Government's financial dealings during the process.

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