by Ian Lucas
As the dust settles on a tumultuous couple of weeks it is becoming clear that outside the Westminster bubble, only one event has truly cut through to the general public: the budget.
With the cut in the 50p rate of tax and the imposition of the “granny tax”, this was truly a Budget for “the premier league” – those top rate taxpayers who had the ear of the prime minister and have benefited directly as a consequence of George Osborne’s announcements.
What is clear is that securing economic growth and new jobs was not a key topic of conversation at the Downing Street dinners. Before the Budget, and after it, the failure of this Government is its failure to build growth.
A cut to capital projects has taken away key Government support for private sector job creation. Whole industrial sectors – such as construction – are suffering as a result, and both large-scale firms and their smaller subcontractors are holding back.
The uncertainty in the jobs market is reducing employee confidence. People are postponing major spending decisions. If you are worrying about your job, you won’t move house. Income for the local economy, agents’ fees, finance to builders is held back.
Worries about jobs are hold back spending; yet the Government has increased taxes on consumers. Every penny more on VAT for central Government is a penny less for local business.
It is necessary to reduce the deficit. But the most damning statistic for the Government is that it is borrowing £147 billion more than predicted – because the economy is not growing and more people are out of work.
