Asian Voice

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SEE INSIDE .... London's Rath Yatra Festival of the Chariots illuminates the city....pg 2 Lord Dholakia re-elected as Liberal Democrat Deputy Leader in the House of Lords........pg 11 I will never say no to Mani Ratnam............pg 20 Vogue editor apologizes to upset Hindus......pg 25

VOICE

Let noble thoughts come to us from every side

VOL 39. ISSUE 8

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FIRST & FOREMOST ASIAN WEEKLY IN EUROPE

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Osborne goes for spending cuts VAT goes up, Child benefit frozen for 3 years

Chancellor of the Exchequer George Osborne (C), flanked by Deputy Prime Minister Nick Clegg (L) and Treasury Secretary Danny Alexander, announces his budget in the House of Commons in London on June 22

spending cuts – including an £11bn trimming of the welfare bill – and £8bn in tax increases. It pays for the past. And it plans for the future. It supports a strong, enterprise-led recovery. It rewards work. And it protects the vulnerable in our society. Yes it is tough – but it is also fair.” The chancellor admit-

ted that the impact of the budget squeeze would lead to lower growth and higher unemployment in the short term but said the need to avoid a Greekstyle sovereign debt crisis left him with no alternative. Dismissing criticism that the budget risked derailing recovery, Osborne said the UK economy would grow by

1.2% this year and 2.3% in 2011. Osborne said welfare reforms would include less generous housing benefit and stricter rules for disability benefits. Banks and building societies will have to pay a new £2bn levy following their pivotal role in causing the financial crisis that led to the longest and deepest recession since in Britain since world war II. This levy however, is smaller than what had been feared. Even the rise in Capital Gains tax is just 10% against the expectations of 22% to 32%. The VAT rise, due to come into force next January, will generate more than £13bn a year by the end of this parliament. Zero-rated items – including food and children's clothes – will remain exempt from VAT over the course of this parliament. Continued on page 24

Compensation for LRA victims too As Uganda is preparing for elections in 2011, the government has announced to pay compensations for about 10,000 people who have suffered LRA violence in the northern region for more than two decades. In another development, a report by the Auditor General has exposed the false claims about left properties of Asians who were asked to leave the country during the Idi Amin regime. Against the government report of just 136 properties, the latest findings say 3226 properties left over by Asians are unaccounted. One of the most ruthless rebel groups, the Lord’s Resistance Army (LRA) waged a brutal but futile insurgency from their bases in northern Ugandan and southern Sudan to dislodge President Yoweri Museveni and establish a theocracy in the east African country. The military ejected the rebels from the area in 2005. The rebel

leader, Joseph Kony, wanted by the ICC over charges of war crimes, is now believed to be roaming the jungles of n o r t h e a s t e r n Democratic Republic of Congo and Central African Republic (CAR). Richard Todwong, President Museveni's special adviser on northern Uganda, said the government had begun to register everyone who had suffered crippling physical harm to prepare a register of victims to collect compensation. Continued on page 24

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Chancellor of exchequer George Osborne went ahead with the widely expected, termed by himself as an “unavoidable budget” to go for a £40 bn austerity package with increase in VAT, a two year pay freeze for public sector, three year freeze in child benefits, relinking of state pension to earnings. He did give some relief to low income families with a rise of £1,000 in personal allowance for Income Tax, bringing up the threshold level to £7,545 a year and also a nominal rise in child tax credits for those with the lowest incomes. Cuts of more than 25% in spending by some Whitehall departments are also a part of the tightening exercise. “This emergency budget deals decisively with our country's record debt," Osborne said as he revealed plans to raise an additional £32bn from

3,220 properties left by Asians unaccounted in Uganda

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