INDIVIDUALS look at the Budget and initially react to how it is going to impact on them in the short term.

All of us are aware of the economic background and though few take a detailed interest there is an instinct as to where we seem to be heading.

Confidence is something which determines how things go in the Stock Market, but politicians have to recognise that electors can lose confidence, too.

The Chancellor is right to point to the turbulence of the world markets and the cause, which seems to be the US sub-prime market, but he must be seen to have a steady hand in terms of the overall changes he makes in terms of Government spending.

Already we know that past decisions with regard to private finance initiatives to pay for schools and hospitals will have to be paid for, and the expensive wars we are in, which may last a long time, are an additional load.

I am no prophet, but I think, tactically, the Conservatives are being very shrewd in not promising tax cuts until they have won a second term.

The present administration might already be quavering at the thought that the writing is on the wall.

Geoffrey Bulmer, Billingham.

AFTER the recent Budget we see this Government's tax war on the working person continues.

Could I suggest a green breath tax be forced on the people of this country. Every person inhales oxygen and exhales a certain percentage of carbon dioxide - an ideal opportunity for a CO2 emissions tax on human beings.

People, like cars, could be microchipped and linked to a satellite.

Their CO2 emissions recorded, the Government could bill them monthly at, say, 20p per exhalation.

Payment could be by Direct Debit from bank accounts and no Direct Debit could mean extra payment.

Unfortunately, taking your last breath before dying will attract a one-off charge for the inconvenience to the Government of Direct Debit cancellation.

Think of the billions of pounds pouring into the Treasury. Sorry, I meant into the "Green Save the World campaign of the Government".

Just how much more tax do I and other people have to pay to "save the world"?

Remember, if you vote for New Labour at the next General Election you vote for a higher burden of direct taxation that will cripple you.

Jeff Ashton, Darlington.