British Chancellor of the Exchequer George Osborne said yesterday that all Britons should be prepared to make sacrifices to help shrink the nation’s debts, as he prepared to defend his faltering austerity plan in the coming days.
Osborne is due to present his Autumn statement on Wednesday — the half-yearly budget update in which he may face the tough choice of either announcing more cuts or delaying his debt target.
He is expected to defend his stringent economic policies as the only credible way of solving the government’s biggest political problem — its failure to deliver a strong recovery.
Writing in the Sun on Sunday newspaper, Osborne said all sectors of society needed to accept cuts or higher taxes.
“Everyone must make a contribution to dealing with our debts, from the richest in our society to those living a life on benefits,” he said.
“We are hunting down those who evade tax wherever they try to hide. But we understand that fairness isn’t just about taxing the rich. It’s also about ending the something-for-nothing benefits culture,” he said.
British media reported yesterday that Osborne was poised to announce plans to cap the pension benefits of high earners alongside reining in the welfare budget.
The Treasury declined to comment on the reports.
Other measures likely to be announced include moves to boost Britain’s fledgling shale gas industry, newspapers said.
Slow growth over the past two years means it will take at least two years longer than originally planned for Osborne to meet one of his debt-reduction goals, removing Britain’s underlying budget deficit.
However, in his article, the chancellor expressed a firm commitment to his economic policies.
“Britain is on the right track and turning back now would be a disaster,” he said, citing low interest rates and the creation of 1 million private-sector jobs as examples of the success of the government’s strategy.
The failure of the government to nurse the economy back to strong growth after the financial crisis has fueled attacks from the Labour party, which polls show would regain power if an election were held.
TAKING STOCK: A Taiwanese cookware firm in Vietnam urged customers to assess inventory or place orders early so shipments can reach the US while tariffs are paused Taiwanese businesses in Vietnam are exploring alternatives after the White House imposed a 46 percent import duty on Vietnamese goods, following US President Donald Trump’s announcement of “reciprocal” tariffs on the US’ trading partners. Lo Shih-liang (羅世良), chairman of Brico Industry Co (裕茂工業), a Taiwanese company that manufactures cast iron cookware and stove components in Vietnam, said that more than 40 percent of his business was tied to the US market, describing the constant US policy shifts as an emotional roller coaster. “I work during the day and stay up all night watching the news. I’ve been following US news until 3am
UNCERTAINTY: Innolux activated a stringent supply chain management mechanism, as it did during the COVID-19 pandemic, to ensure optimal inventory levels for customers Flat-panel display makers AUO Corp (友達) and Innolux Corp (群創) yesterday said that about 12 to 20 percent of their display business is at risk of potential US tariffs and that they would relocate production or shipment destinations to mitigate the levies’ effects. US tariffs would have a direct impact of US$200 million on AUO’s revenue, company chairman Paul Peng (彭雙浪) told reporters on the sidelines of the Touch Taiwan trade show in Taipei yesterday. That would make up about 12 percent of the company’s overall revenue. To cope with the tariff uncertainty, AUO plans to allocate its production to manufacturing facilities in
COLLABORATION: Given Taiwan’s key position in global supply chains, the US firm is discussing strategies with local partners and clients to deal with global uncertainties Advanced Micro Devices Inc (AMD) yesterday said it is meeting with local ecosystem partners, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), to discuss strategies, including long-term manufacturing, to navigate uncertainties such as US tariffs, as Taiwan occupies an important position in global supply chains. AMD chief executive officer Lisa Su (蘇姿丰) told reporters that Taiwan is an important part of the chip designer’s ecosystem and she is discussing with partners and customers in Taiwan to forge strong collaborations on different areas during this critical period. AMD has just become the first artificial-intelligence (AI) server chip customer of TSMC to utilize its advanced
Six years ago, LVMH’s billionaire CEO Bernard Arnault and US President Donald Trump cut the blue ribbon on a factory in rural Texas that would make designer handbags for Louis Vuitton, one of the world’s best-known luxury brands. However, since the high-profile opening, the factory has faced a host of problems limiting production, 11 former Louis Vuitton employees said. The site has consistently ranked among the worst-performing for Louis Vuitton globally, “significantly” underperforming other facilities, said three former Louis Vuitton workers and a senior industry source, who cited internal rankings shared with staff. The plant’s problems — which have not
RSS