A BUDGET FOR WHO???
This weeks’ Budget, courtesy of the 14th Earl of Whyborne, has been lauded to the skies by the hard of understanding…
…Or as I like to think of them, Monetarists. The lack of imagination, and of any long-term goals other than dismantling the NHS, do not give me any confidence in Gideons’ old Maths Tutor. Then again, what should we expect from a man who dodges £1.6 million in tax whilst telling the rest of us to “pull together”?
Lets just examine a few measures here, for the sake of general interest…
- “The Sun Says Yippee! – 1p off fuel duty!” Yes, and there will be a rise of 5p in 2012.
- Tobacco duty up by 2% above inflation. Giving a welcome shot in the arm to the smuggling industry.
- An increase in Premiums Tax means that the cost of insurance rises – just as the Government wants us to take out private health insurance.
- A three year freeze in Child Benefit – so thats a decrease in light of inflation.
- The tax on Beer now exceeds £1.00 per pint. Britain’s vibrant Pub and Brewing industries salute you – not.
- National Insurance up 1% for us, but not for Employers.
- Personal Tax allowance up by £50 per month in April 2012. With the rises in the cost of living over the last twelve months, let alone the next year, this will at best give you £5 extra a month in your pocket.
- Council Tax frozen or reduced in EVERY English Council – regardless of the real needs of those communities.
- A return of the Enterprise Zone. Thatchers great sticking-plaster of the 1980s, that made little long-term difference to the areas blighted by her recession of the early 1980s. Anyone off to see Liverpool Garden Festival?
For this budget to work, the UK economy has to grow by around three percent each year until at least 2015. This is quite a lot, if we look at our history over he last forty years. It could happen, as the worldwide economy is tenuously starting to revive. Yet massive public spending cuts and redundancies will cost the exchequer dear, and reduce income from taxation – it could lead us into another recession, rather than digging us out of one.
And there is another point. Gideon and his gofer Danny Alexander have done precious little to curb the outrageous levels of speculation in The City, nor have they come up with the kind of regulation needed to prevent, or at least limit the kind of crash we saw in 2008.
Long term, our economy is seriously unbalanced – with finance far too prevalent, and industry seen as a poor relation. Yet if we look at Germany, a country that actually still makes things and sells them, their recession is ending rather quicker than ours. This Budget does nothing to address this imbalance, nor do the Coalition partners seek to do so. Unsurprising really, when you think of all the ex-City men in the Cabinet…
So thats why I urge you all to march on Saturday for an alternative to this ill-considered schoolboy essay masquerading as a Budget.