The first challenge

The Conservative-Liberal Democrat coalition government in Britain presented its first budget on 25 May. We look at press response.

Strong reaction

Britons are ready for change and enthusiastic about the new coalition, writes The Daily Telegraph. But the economic climate in Europe and the rest of the industrialized world is less optimistic, and this is where Britain’s new leaders will be tested.

… The over-riding priority is the reduction of the deficit and restoration of economic growth. The establishment of an Office for Budget Responsibility will help with the rebuilding of the public finances, while tax and welfare changes are designed to remove the poverty trap that encourages people to live on benefits. The number of non-EU economic migrants will be capped, while new infrastructure investment in high-speed broadband and trains will be encouraged; not before time, the Royal Mail will be part-privatised. …

Age of austerity

With cuts of £6 billion in public funding, the British government has announced major austerity measures. The Financial Times argues that cuts are necessary, but that stimulating economic growth is equally important.

… The government must explain where the jobs and growth are going to come from. In the past decade the country became dependent on financial services; it now needs wealth creation in other sectors. The talk cannot all be of belt tightening; the coalition must come up with plans to rebalance the economy too.