Budget next week....
16 March 2013
...my invitations to various budget briefings have been arriving in my in-box but this year I really do not expect much at all and can find no real interest in attending any of them.
...my invitations to various budget briefings have been arriving in my in-box but this year I really do not expect much at all and can find no real interest in attending any of them.
The prescription of what is needed does not change. Osborne needs to reduce the public sector burden with faster and deeper public spending cuts. This needs to be accompanied by tax cuts aimed at those taxes that most damage the economy, taxes on income. He needs to lift those working on the minimum wage out of tax and NI all together, he needs to cut back the top rate of tax to no more than 37p (including NI), he needs to restore the nil rate band to those earning over £100,00 to get rid of the criminal 62p tax rate. He should also bring in some significant supply-side reforms aimed at reducing the risks and costs of employing people. In short he needs to go for growth.....
I am not holding my breath for any of that.
Political considerations, not economic considerations, are what will govern the budget. He knows what is needed economically but his window for doing what he should be doing has passed. He and Cameron should have stood up to the LibDems in his very first budget and called their bluff, but they have been too concerned over holding together a coalition than in doing what is right for the UK economy.
The best we can hope for is that he blocks some of the more stupid ideas emanating from the LibDems.
Do not expect much this week. I hope I am happily surprised. We shall see.
- ed b*lls has called for a cut income tax in the budget, not often he sings from the same hymn sheet as barry.
- and what song sheet is that howard.
- Hopefully the LibDem members of Osborne's team can be persuaded to keep Budget measures confidential this time, instead of blabbing to the press as they disgracefully did last year.
- No chance of that Peter.
allso a 15p tax band up to 35,000,then 38p tax band above that to 75,000,and 45p for the rest.and a flat rate 30p tax band on bonuses.