What should be in the Budget?

 

This morning’s “Labour List” asked me to fill in a questionnaire on what I thought should be in the budget.  I was asked for one “most important” item and then for two further suggestions.

Off the top of my head, my responses were:

Most important.

End the Two Child Limit on Universal Credit.  It is unconscionable  that this very rich country should be punishing children via this immoral and ineffective piece of gesture politics.

Next.

Give a significant increase to the grants to local government, graded according to their needs (“levelling up,” to coin a phrase.)  Local government  is responsible for various vital services, including provision for care of the elderly and the requirements of children with special needs.  Local government needs building up, not made to further reduce  services already stretched to the limit, thus taking the blame for the incompetence of the (previous?) central government.  Such an increase would also signal further devolution – a movement away from the centralist view that “Westminster knows best.”

Thirdly

Raise the Overseas Development Assistance budget to at least 0.58% of GDP  (see previous post for the argument) and announce plans for restoring it to 0.7%.  As even David Cameron said:  “The UK will not balance its books on the backs of the poorest.”  (27^th May 2011)

There was no provision if the questionnaire for further suggestions.  The above are short term.  I’d like to see some tax(es) increased NOW to invest in  the building of a sustainable green infrastructure, and the creation of a Commission to examine the UK’s taxation structure, with a view to switching away from “goods” (such as work) to “bads” (such as pollution) as Paddy Ashdown argued years ago, and from income to wealth (see Phillip Collins’s article on “Hand-me-  down economics” in the August edition of Prospect.