A quick response to Mr. Osborne’s Emergency Budget
This tough austerity budget, in which everyone will bear the pain together, has everyone at the BBC prattling on about the projected 25pc departmental spending cuts.
Apparently, everyone’s forgotten George Osborne’s admission that, because of his refusal to cut capital spending projects, overall Government expenditure is set to rise from £637bn to £711bn over the five-year term – a mere £74bn increase (that’s well over 11.5pc).
Wow! What a sacrifice by the State. Imagine how much more Government would have awarded itself if we weren’t in a recession.
I further note that, as indicated beforehand by David Cameron, some Government departments are more equal than others. Spending at the Department of Health (doh!) and the Department for Overseas Bribery Development won’t be cut. I guess the coalition Government needs to keep renting votes in the North-East and the UN General Assembly, and Big Business needs some more taxpayer-oiled overseas contracts in the “Developing” World.
Clobbered: middle England (esp. those on household incomes of £40-60k), anyone on State “benefits”, anyone planning a big ticket purchase in the New Year (when VAT will rise from 17.5pc to 20pc)
Pseudo-clobbered: the rich (28pc CGT is still less than the top rate of 40pc income tax, so that loophole remains cost effective), the banks (surely the new bank tax won’t be passed on to customers in the form of higher charges – will it?)
Encouraged: Some small business owners (various breaks relating to entrepreneurs’ CGT, NI breaks for SME’s outside London and the South East).
Overall: Open for (Big) Business as Usual.