The Budget: another damp squib.

I have long believed that the annual Budget is over-hyped on the UK.  

Up to the middle of the last century some MPs would wear top hats and morning suites in the House of Commons of Budget Day in order to "recognise" its importance. Today we are bombarded for weeks before it with  speculation on what might be in it, then for a couple of days the media concentrate on how various sections of the population are affected.

 After that, save for some monumental bloomers (Liz Truss)  or foolish errors ( the Starmer  government's decision to increase the tax on employment) its contents are forgotten

 I believe this  alleged importance is misguided for two reasons.  

First the decisions very rarely affect the quality of life of the majority of the people.  For example, the headline item of this budget was  an extra £100 for more modest households (including mine)  to help with fuel bills.  Even for the very poorest household that it hardly likely to be life changing, It amounts to £2 per week and the purchasing power of a £1 today is barely more than that of a threepenny-bit of my youth (and  looks much the same)

Secondly, the fuss over-estimates the importance of income on the quality of our lives.    Once our incomes are sufficient to have "enough," then more has little consequence. And 80% of us in the UK, maybe even 90% have enough.  Beyond that  relationships, leisure pursuits, creative arts, sports and  culture, have far more impact..

 Gandhi pointed out that "The World has enough for everyone's need, but not for everyone's greed."  

If that's true for the World then it's certainly true for the UK, still in the top ten of richest  economies. 

That is not to say that  the various minor tweaks  in Mr Healey's budget - increase in the gambling tax on slot machines, more revenue to be spent locally (though I would prefer through councils rather than Santa Claus mayors), end of standing charges for utilities - are not welcome.

But these are a far cry for the sweeping away of 40 years of neo-liberalism, nor any significant movement towards fairer taxation.

   

 As Tax Justice UK comments:

There was no progress on a Wealth Tax. No serious reform of Capital Gains Tax. No equalisation of taxes on wealth and work. No meaningful reform of council tax. No windfall tax on excess bank profits. No substantial action on aggressive corporate tax avoidance. No commitment to bring failing privatised utilities back into public ownership.