Ramblings about The Budget...
As we know the Conservatives have a near fatal attraction to VAT. Show them the key to Downing St and as sure as eggs is eggs, the VAT will skyrocket. So it wasnt any real surprise that the VAT was scorched up to 20% yesterday. VAT is an unpopular tax because it hits people right across the board on almost all goods, and the poorer you are the higher percentage of your income it absorbs and steals away. There's nothing sophisticated about VAT - Its the scattergun effect in action.
This was a very severe budget all round but despite George Osbornes particular positioning in the state of the economic nation, a view not shared by all as we know, his budget didnt resonate too dramatically or positively with the financial markets as they more or less stayed exactly as they were..without even a trace of a moderately lukewarm flurry.
Nothing went on beer and fags in this budget, unusual, but if he already has your gooleys in the palm of his hand due to the blanket VAT, then he didnt need to do anything there, so dont see it as a plus point.
However in fairness there was one excellent plus point in his raising of the tax threshold. This means you are allowed to earn more before the TaxMan comes knocking on your door. This gives the poorer working families quite a good boost...in that some very poor workers will be out of the tax bracket altogether. Good news for those with a social conscience.
Labour Leader Harriet Harman was in fine form yesterday in her response...and she saved the real venom for the turncoat Libdems who once again sat amongst the Tories like nodding dogs...baying yes to every Tory policy shift. These Libdem guys had campaigned vigourously against VAT just a few short weeks ago and here they were whimpering and simpering before the British public in later interviews, with a squirm factor the like of which hasnt been seen before. They know they have shafted their voters. You can see it in their eyes. As Ms Harman said....they have abandoned their principles, and their voters, so that they can ride ride around in ministerial cars.
They are finished as an outfit...the turkeys voted for Christmas!
The picture shows Chancellor George Osborne..with Libdems to the right of him, Libdems to the left of him.