It is dangerous writing about budgets so soon after delivery since they can unravel with alarming speed but a US trip beckons so there is no alternative…
This was the Conservatives at their fiscal best. Cautious, caring, with some targeted extra expenditure, and sensible reforms to the tax system. All without losing sight of the grinding need to bring down the deficit. In contrast, Corbyn’s financially illiterate, ranting response demonstrates why the Opposition is so manifestly incapable of taking responsibility for the economic stewardship of the country.
Most notable budget positives were a continuing above-inflation rise in the national living wage, improvements in the delivery of Universal Credit, more investment in infrastructure and technological initiatives and modest further investment in the NHS. On housing, there was an impressive £44bn increase in loans and capital spending to increase the supply of housing by 300k units per year by the mid-2020s combined with the abolition of Stamp Duty for first-time buyers on properties under £300k. More complex reforms to land bank management and careful relaxing of pay levels for the retention and recruitment of key workers such as nurses, are rightly put to an enquiry. The list could go on. All sensible stuff and seemingly unlikely to unravel.
The economic record of the Conservative Government (sometimes part coalition) has largely been outstanding since 2010. Despite some missteps, a falling deficit, 3 million plus more jobs and the relative improvement of those most poorly paid have been excellent achievements. Perhaps underpinning the benefits of EU membership…
Austerity can and should now be gradually loosened, particularly where it is cutting into the bone of local services and this is starting to happen.
And yet, sadly, this was no radical budget and is unlikely to alter the current political narrative. The Chancellor today provided something for a lot of people but not enough for any one group and few initiatives will impact immediately. Headlines are partly dominated by the forecast of economic growth slowing sharply, restricting future room for manoeuvre. Brexit has apparently cost £700m so far with another £3 billion to come, only re-emphasising the scale of damage this decision, guided by so many Conservatives, is causing.
In the last piece of commentary a game changing budget was asked for. This was not it. The next rescue bid for this Government moves to EU negotiations. A more generous exit settlement combined with talks starting on a trade deal may provide the lifeboat needed. We shall see.