BUDGET? CAN’T WAIT….

Call it a review, call it whatever you like but whichever way you look at it we have had for a number of years now two budgets per annum. This year is not going to be any different.

On Wednesday, November 26^th the House will be packed to hear the latest report from Chancellor of the Exchequer Rachel Reeves. No doubt there will be much made of what this government inherited from the previous government. In the 58^th General Election held in this country, Labour won with a fraction over a third of the vote. That means that two-thirds of the voting public didn’t vote for them. The actual turn-out was the second lowest ever. The lowest was in 2001 when Tony Blair was re-elected. To be fair, there was a lower turn out in 1918 when a Liberal-Conservative coalition was formed with David Lloyd George taking the lead role. The circumstances were very different then of course.

The point is that in what we might call ‘modern’ times whatever party is elected spends the next 18 moths or so blaming the previous government for everything that is wrong.

So far in recent weeks we have heard that taxes are going to rise, only then to be told they are not going to rise. Why the quick turn around? Because the government is desperately trying to living up to the ‘we are the good guys’ image they created for themselves to get their majority election vote.

If you don’t increase Income Tax it is not a great problem because you have the other tax to play with – National Insurance. You can fiddle around with various other taxes too. Don’t displease the Labour voters too much but hit those with estates, farms and so on. Don’t hurt the investors from overseas because you will end up bailing them out to save jobs including those of Labour voters. It is a conundrum.

One thing is certain. If it doesn’t hurt it will be a cowardly turn around to save face. If it does hurt then let us hope that whatever money is extracted from us is spent wisely and not simply another contribution to our financial sickness.