Crunch for Gordon Brown
The property market has been the main topic of discussion in the media and it does now appear the both the UK and US governments are concerned enough to put serious money into working through the slump in prices. Since my last blog, the US government has invested billions in two ailing financial institutions while Gordon Brown has pledged billions to raising the lowest level of Stamp Duty and bailing out struggling borrowers who mortgaged in more bouyant times.
With speculation over the future of the PM in terms of his leadership and the upcoming election this could be the last gamble Gordon Brown has to offer. The ‘Tony and Gordon’ package profited massively from the inflated property market in the last 10 years, and now are counting the cost of the inevitable re-adjustment in prices to a viable level.
The backdown on 10% income tax was fairly embarrassing, but this seems to be the one thing which could tip the balance away from New Labour with less than promising poll predictions and by-election results.
Hopefully we will see a bit more leadership in the months to come, with a plan which they stick to! There have been two or three backdowns in recent months (Northern Rock, 10% income tax etc) which never looks good. Are the government expecting people to run out and sell their houses for thousands less just to save an average £550 on Stamp Duty, sounds like a hollow promise-at least we wont have to find billions to fund it if no-one takes it up!