This week saw the time honoured tradition of well-placed Budget leaks, the Chancellor’s delivery of the Budget and the subsequent intense analysis of the policies announced. Thankfully for the Government this resulted in little coverage of the House of Lords voting against key elements of the Trade Union Bill.
In the days leading up to the Budget two rumoured announcements in particular caused feverish discussion. A requirement for all schools to become academies and a change in pension relief, the latter of which was not bought forward in the budget. There were also hints that the economic picture may be gloomier than expected and there would be a need to “act now to make sure we don’t pay later”, a phrase which was used again during the Chancellor’s statement. In addition the Prime Minister announced that millions of low-paid workers who put aside savings would receive a top-up from the Government.
A recurring theme during the Budget statement was that this was a budget for the next generation, with announcements about a lifetime ISA for those under the age of 40, an increase in the personal allowance, education reform with the possibility of extending compulsory maths to the age of 18 and a tax on sugary drinks.
The more sceptical amongst us may have felt that parts of the Chancellor’s statement read like the transcript of a job interview, and the Chancellor did indeed seem to be looking forward beyond the end of this Parliament. A number of ambitious infrastructure projects were announced including a proposal for a trans-Pennine tunnel linking Sheffield and Manchester, an ongoing transport challenge due to environmental constraints as opposed to engineering constraints. If built, it will be the first major cross-Pennines link since the M62 was completed in the 1970s and would go a long-way to subduing critics of the Government’s ambitions for a northern powerhouse.
Decentralisation to a local level was a theme in the Budget statement with the announcement of directly-elected mayors for rural regions. Whilst planning reforms including updating the New Towns Act, offering financial support for councils committed to building new settlements of between 1,500 and 10,000 homes and a review of Compulsory Purchase Orders (CPOs)were buried in the small-print.
Initial analysis of George Osborne’s budget centred on the announcement of a tax on sugary drinks and changes to disability benefits, with many critics commenting on a lack of commitment to addressing climate change and tax loopholes. The Chancellor’s vociferous pitch for remaining in the EU, provided a sound-bite for the Remain campaign, but detracted from the Budget and caused an unnecessary split in opinion within the Chancellor’s own party. Others discussed the viability of a number of the announcements, including changes to disability benefits which Nicky Morgan appeared to downplay during last night’s Question Time.
Many of us will watch with interest to see the introduction of mayors in rural regions and what form the devolution of criminal justice to Manchester will take. However, whatever your opinion of the 2016 Budget, few can criticise the Chancellor for a lack of forward-thinking or ambition.