UK agrees cuts not taxes

(CNS): Following his recent visit to the UK to discuss the country’s fiscal situation and the new Miller report the premier said this morning that the UK has agreed to the Cayman Islands government tackling the 2009/10 budget deficit through cuts an not taxes. Even though reluctantly the premier stated that the FCO was allowing the CIG to work on a three year budget plan that focuses on reducing public expenditure and focuses on investment rather than new revenue sources. Depending on the extent of cuts government can make over the next three months and the three year plan,  Bush said the UK has also agreed to limited borrowing if necessary at the end of this year to address the deficit. But he said the FCO has stated it is not willing to revenue the current net-debt ratio limit for other borrowing other than for emergency situations

Bush described this recent meeting with FCO officials as very good and even though they were still keen to see Cayman introduce taxation they were willing to allow government to try and tackle the budget imbalance through cuts in public service in the first instance.Armed with the Miller report, the result of the independent commission by James Miller and David Shaw, Bush presented his case to the UK based on the recommendations which focused almost exclusively on spending cuts as the way forward for Cayman.