May 25, 2008

Budget Won't Help Labour's Electoral Chances

There is a rather strange Editorial in the Herald on Sunday this morning. It essentially suggests that people will laugh at their tax cut. And that Cullen has bequeathed National guaranteed criticism because of programmed cuts in Government expenditure. The conclusion is that this will be a good election to lose.

We have made similar comments to this conclusion in the past so take no issue with it, but do suggest that if the HOS is right, then the financial markets have the budget very wrong. They are overimpressed by Cullen's generosity and underimpressed by suggested belt tightening within Government (as are we).