I sat listening to Rachel Reeves’ speech, with my freshly prepared Budget bingo card in my hand, eager to check off my predictions:
- Blame the Tories for leaving a bigger black hole in the public finances than admitted? Tick
- Emphasising that she won’t be increasing taxes on working people? Tick
- Avoid mentioning the South-East when announcing where the Government will be spending all this new cash it has freed up/borrowed? Umm mostly Tick
- Teasing Rishi Sunak on his last real duty before the new Tory leader is elected? Tick and HOUSE!
For my areas of specialism, It was a budget of nothing; no corporation tax changes, no R&D changes and no VAT changes unless you can get excited over the VAT on private school fees, which smacks as Classism as much as fundraising potential.
The headlines will probably go to the changes in Capital Gains Tax and Inheritance Tax, though most hard done by would seem to be employers, who are hit with higher National Living Wage at the same time as an increase to Employers’ National Insurance,
Rachel then spent the second half of her speech telling everyone how she was going to spend all this extra money, including rewriting the fiscal rules to allow the Government to spend even more. Though many of the projects are noble and very necessary, as a Nation we have a terrible record of overspending and underdelivering when faced with such grand schemes (HS2 anyone?), so this Government needs to ensure that we actually get value for money.
This Budget was a free hit for Labour after 14 years of Tory rule. Next year will really determine if they are on the right path.
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