Effect of the Budget Announcement on the Economy - Essay Example

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Effect of the Budget Announcement on the Economy

This has occurred as a result of the announcement made on budget day; alcohol was increased by six percent over inflation. Spirits, wine and beer were all affected by this price elevation. (British Retail Consortium, 2008)
The speech has also affected the rate of availability of fuel. The chancellor announced a fuel allowance for mature citizens. However, such an allowance had to be compensated by other users of the resource. This announcement actually contributed to the rising fuel costs. Besides that, the chancellor also announced that polluting vehicles would have to pay up higher road taxes than their 'green' counterparts. This would have been a way to offset the allowance given to senior citizens.
However, the chancellor asserted that the measures would be implemented in the month of October. This is already starting to cause tax contributors and may continue to do so in the year 2009. Perhaps the major reason for this delay was to appease economists and consumers who were likely to demonstrate over rising fuel costs on the streets. However, environmentalists are not very happy about the chancellor's moves. They feel as though they have been short-changed by his delays.
The money market did into improve in any way. Before March, the UK was the country with the highest inflation rate in G7. ...Show more

Summary

The budget read on 2008 had strong impacts on the UK economy in a variety of sectors. Employment, commodity prices, consumer demand, EU currency and other macroeconomic issues are a few of the examples. Environmental concerns and many other segments have been affected by the vice chancellor's speech…
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