What is the government doing? Raising taxes trying to balance the public finances. Is this the correct decision? I hope im not the only one that thinks raising taxes is a bad idea in the long term for private sector companies. Higher taxes means lower spending in retail which means more unemployment which in turn means less money for the government because of higher unemployment lines and even less spending.
In my opinion since we are already in deficit we should try stimulating the economy instead of depressing it further. Lower taxes, income tax and lower the national minimum wage so that people wont have to lose their source of income and have to rely on unemployment benefit. You could raise VAT slightly to offset the lower tax take.
My main point is if they are out of the unemployment line and not dependant on government money to live then we can reduce the burden financially on overly stressed budget.