Even the FT gets the unfairness of today’s budget. As it reports:
Mr Osborne will set out a “Budget for a parliament”. But he will insist that the Budget is “progressive” in intent, and will ensure that the poor and Britain’s economic future are not sacrificed in his attempt to balance the books.
Such a combination of tax and spending measures would, however, imply huge cuts of 20 per cent or more in real departmental spending over four years, or a combination of smaller cuts and larger reductions in welfare spending.
Spending cuts of such a scale could not be presented as “progressive” because public spending is concentrated in poorer areas and poorer families, suggesting that the Budget will have a sting in the tail.
Exactly so.
Fairness and progressivity are impossible when imposing cuts of the level planned.
Those on average incomes and those on low incomes are going to be hit very, very hard today.
And that is wholly unjust.
There is an alternative. Caroline Lucas MP and I have shown this can all be done, when needed, by raising tax. This pain is, therefore, a choice that Gorge Osborne has made. He has chosen to inflict untold economic and social damage on the UK. He has chosen undermine our society. We should never forget the fact that none of this pain is necessary.
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You haven’t “shown” how this can be done, you’ve put forward a view.
How can no pain be necessary when virtually everyone is this country has been living beyond their means for the last decade? Yours is the economics of never never land.
Richard,
May I ask a specific question? Your proposal to limit tax relief to £5k above the personal allowance for individuals with income in excess of £100k – does that include employer pension contributions (s307 ITEPA 2003) and the £30k threshold for ex gratia termination payments?
Perhaps you could point me in the direction of the detailed breakdown of costings? I would be interested to know how the £14.9bn figure is reached.
Thanks in advance
Richard, I hope that you will also comment on today’s FT editorial which advocates replacing Council Tax with land value tax. However, we will have to point out that in order to be fair and efficient, the rate of LVT cannot be fixed at local level.
@Peter
A weird kind of vindictiveness on show there.
“People have been living beyond their means for the last decade” you say?
So in your opinion they need to be punished?
Tell me – would the resulting misery give you a longed for shiver of satisfaction?
@BenM
Ben,
Do I feel sorry for people who have maxed out on credit cards, bought every accessory in sight and then feel squeezed when times get tough? To be blunt, no I don’t, especially when I’ve been living perfectly happily on £18k or less. No is going to die as a result of this. They might feel pain, but if that stops another ridiculous boom then who’s to say it wasn’t worth it? I have found myself in life that experience is a very good teacher. Have you?
But that misses the point. It’s not a question of what I want to happen, it’s a question of what will happen. There’s no escaping it. If you borrow like there’s no tomorrow one day the chickens are going to come home to roost it. I can neither prevent that nor accelerate it, and nor can government.
Peter,
You’re absolutely right. People are not being punished for this they are being held accountable for their actions. There is nothing in this world as a free lunch. We live in a society which says ‘I want it, and I want it now’. I also blame the banks and the credit card companies who gave out this debt so easily, thinking only of their commissions knowing full well the misery that this would call eventually. I follow the rule that a little bit of debt is good for you but only if you have borrowed against an asset that will, in time, increase in value.
@Peter
I spent many of the Tory years, with my husband out of work, robbing Peter to pay Paul, buried in debt. Thank your lucky stars that you have never been in that position and have a bit less contempt for your fellow man.