Saturday 15 March 2014

Pre-Budget

One of the first pieces of legislation passed by Coalition government was the move to fixed term parliaments. The Prime Minister no longer has to go to the Queen and ask her to dissolve parliament, not only have we lost some of the theatre associated with British democracy we have also lost around 18 months of effective government. The coalition have pretty much stopped passing legislation, backbench business and opposition day debates are more prevalent than government business. The government seem to be limping towards the general election, Its like Clegg and Cameron are tied together in three legged race towards May 2015, desperately trying not to trip each other up.

The budget will look towards the next general election rather than making positive changes and setting the agenda for future economic growth.Later this week the chancellor will present his final budget before the 2015 general election. There is pressure from two former Conservative chancellors, Nigel Lawson and Norman Lamont, for a further cut in the tax of higher earners.

There are plenty of Tory backbench MPs who support further tax cuts for the rich, they would of courses would benefit personally from these measures but its hard to believe that the chancellor would back such a move in a pre election budget.

As announced by the Lib Dems at their conference, there may well be a rise in the amount people can earn before paying any income tax from £10,000 to £10,500. This will be worth around £2 per week to those on the low incomes. However it must be seen in context of other previous budget with bedroom tax charges at £15 a week, the government are tinkering around the edges while wages are falling.

In the Hexham constituency, pay has fallen by an average of £270 a month since the Coalition came to power, the recovery that Conservatives speak of is not being felt in Northumberland.

I hope to hear some announcement that will signify that George Osbourne has listened to the public. Maybe he will show a little humility, and acknowledge that pursuing an austerity only approach has stunted economic recovery.

Related post: Osborne wants us to forget about Tory tax rises: http://liamrcarr.blogspot.co.uk/2014/03/forget-it.html

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