This new budget is awful.
Firstly they’re moving us down to 17% corporation tax when we already have the lowest corporation tax rate in the G7 and amongst the lowest in western Europe. We don’t need to play the role of harlot any longer to attract multinationals. Other EU states want to enact a European wide corporation tax rate to stop this ridiculous race to the bottom but this government doesn’t see any sense in that. Why do they even want to stay in the EU if they are adamant on vetoing the most sensible things to come out of the institution?
The tax breaks detailed are nearly entirely for the rich in our society with a reduction of CGT costing the government around 600 million a year by their own calculations. This is coupled with the already planned inheritance tax change that liberals blocked them enacting in their previous term costing the government a further 1 billion. Meanwhile they have the audacity to continue to thrust this tired rhetoric of the need for 3.5 billion more cuts whilst nearly half of this amount is accounted for in the two cuts I’ve just mentioned.
The new ISA packages of up to 20 grand in tax free savings is doing nothing for millennials already spending up to 3/4 of their income on rent, unable to put money away. A continuation of their abysmal approach to the housing crises that involves churning out of saving schemes for first time buyers only home owners could realistically make use of. Why pragmatically deal with a problem after all when its obvious solution, provision of more social housing, only “creates more Labour voters”?
According to Martin Beck, a senior economist from the EY Item Club, quoted on the BBC (at 5.19 pm) considering this budget as a whole it is largely revenue neutral. All these inequality exacerbating measures then are deliberate and indulgent choices, not budget management. Choices that included the slashing of ESA – a disability allowance for the unemployed – by nearly 30%. He’s actually taking from the disabled to give to the rich.
Other measures exist purely to meet that all important target of reaching a surplus in 2020. The infrastructure spending for instance is being brought forward from when planned, so it won’t be on the books in 2020. He’s also tailoring the implementation of certain tax changes to skew the figures, making one year of apparent surplus likely but two not so much.
There’s a longer, more nuanced version of this post that might include the odd concession here and there to some of what’s included but the meat of it remains the same. This headline grabbing sugar tax for example, whilst welcome, is just that classic conservative play of placing some progressively polished cherry on top of this festering pile of crap, in the hopes it might mitigate the stench. It doesn’t.