Budget 2010 - A View.

The first Tory budget is becoming clearer - no surprise that it contained hidden tax increases and clawbacks for working families that help pay for headline tax breaks for businesses. Not surprising, as it was a tory budget, whatever the Lib Dem's thought it was. The cuts of almost £100 billion over the next 5 years are far higher than they need be.

Meanwhile the future for Lone Parents with children over five who don’t work is pretty grim – onto JSA and a year later losing ten per cent of their housing benefit, while child benefit is frozen and VAT goes up and benefits rise only by the Consumer Price Index. for a recent media report on the budget.

VAT apparently won't matter much according to some media commentators, but try telling that to someone with a limited income like a pensioner or one on modest incomes. Energy costs aren't cheap and are essential in the colder months, never mind sanctimonious comments about just having to buy less.

It’ll be an improvement for lone parents if they do find work of course – but unemployment isn't likely to be reducing soon, so how easy will it be – especially as this move makes the labour market more competitive ?

Thankfully here in Halton we have been doing better than others with continued investment, but even the recent B&Q announcement reminds us the labour market is treacherous in current times.

Bankers get off lightly.

Interestingly enough, the real culprits for the economic mess - the banking sector - got off lightly.
For a recent view on why the budget was more ideologically about cutting back the size of the state than addressing the economic issues The cuts to the banking sector total about what the cuts to Housing Benefit equal.

A Progressive budget ?

Even that bastion of fincial interest the FT acknowledges the new tories real budget aims, to read their summary of how 'progressive' the budget was. The attack on the unemployed and benefits will save £100 million from those without work, in an economy with two and a half million unemployed. Is that what Lib Dem's call progressive ?

The Tories lies on Tax Credits.

For those in work, the pain will start soon enough. One of the details tucked away in the budget are the Stealth Tax Credit changes. The increased speed of the taper on Tax credits and lower cut off point means that those families on £23,000 a year or more will see their Tax Credits going from 2012. To read more detail

The Tories will of course prefer to highlight the increase in the Child Element of the Child Tax Credit - supposedly to make up for the freezing of child benefit – which is probably what desperate Lib Dem's up and down the country will also try to promote - as there's little else. What they can both be guaranteed to look forward to is the real cuts in tax credits being highlighted.

As for the pledge on 'Fair Pay', read the following recent newspaper report

Click here