Budgets and taxes in post-election Britain

In the UK, the Conservatives and the Liberal Democrats have formed a coalition, with Conservative Party leader David Cameron as the country’s new prime minister. Here we look at what the press has to say.

Cameron finally seals the deal

In response to the newly formed coalition, the Financial Times writes about the financial challenges the government will face:

If the two parties can build a stable platform, a series of grinding Budgets will be necessary. That will stretch their new-found amity to the very limit. Containing the inevitable strains will require real leadership from Mr Cameron and the Lib Dem leader Nick Clegg. They must rise to the occasion. Britain needs a coalition that is built to last.

The coalition government: Sweetening the pill

The Guardian reports on the changes in income taxes that were promised:

The new government will take office with the books awash in red ink. Both the yellow and the blue wings of the new alliance… campaigned in the recent election on the promise that they could cut taxes related to income. The great test of both parties will be whether the rich can be made to pay their fair share for the debt, or whether instead the burden will fall on the poor and those on lower incomes through service cuts and rises in VAT.