British media are describing the budget that Chancellor George Osborne is expected to unveil Tuesday 22 June as the most “austere” in a generation, with sharp tax increases and cuts in spending. The budget deficit is 11 percent of GDP. US President Barack Obama, in the runup to the G20 Toronto meeting in four days, has cautioned other countries not to move too quickly to remove economic stimulus packages, but Prime Minister David Cameron’s spokesperson said Monday that “For some countries, such as our own, there is a need to get on and deal with the deficit more quickly,” reports Reuters UK. The tough budget cuts and tax increases, possibly including higher VAT (value-added tax) are being viewed as the first real test of the coalition government, with warnings from the left that the country should well until it is stronger before taking such strong measures or it risks falling back into recession. Nearly one million of the country’s lowest paid workers will no longer pay income tax under the new measures.
The G20 meeting 26-27 June in Toronto, where the contrast between sluggish growth in advanced economies and more robust growth in developing countries will play an important role in determining the agenda.
Links to other sites: Financial Times, Guardian, Reuters, Telegraph, Xinhua
Britain will offer 6,000 fewer university places to students in 2010 and the number of applications is up 23 percent, reports the Times, citing Mary Curnock Cook, the new head of Ucas (university placement service) as suggesting two alternatives for students who don’t get the place they want: apply to the Extra system immediately to be matched to an open place or consider going to university later in life. But the Times reports that “Mature students are putting extra pressure on the higher education system. The number of over-25s applying has swelled by 63 per cent this year. Those who were rejected last year have also snapped up places from sixth- formers yet to get their grades.” The newspaper argues that “at least 50,000 students” who are applying will not be given places.
In related university news, the Telegraph reports that Lord Patten of Barnes, the chancellor of Oxford, wants to see school fee caps ending, arguing that universities should be able to charge the fees they think necessary to keep their world-class standing.
Swiss Federal Council (cabinet), 2010
Bern, Switzerland (GenevaLunch) – Switzerland’s cabinet, the seven-member Swiss Federal Council, which governs as a body of equals, has published its official photo for 2010. Left to right: Didier Burkhalter, the chancellor for the Swiss Confederation Corina Casanova, Eveline Widmer-Schlumpf, Ueli Maurer, Micheline Calmy-Rey, Hans-Rudolf Merz, Swiss President Doris Leuthard, Vice-president Moritz Leuenberger. The presidency is a one-year rotating position, while the chancellor’s job is to oversee the smooth functioning of the administrative side of the government.
