Things are looking better. Employment is up, growth will be higher and the deficit is decreasing. But – and this “but” is so important it is worth breaking grammar conventions for – the economy has not mended yet.
The early signs of economic improvement allowed George Osborne to give rewards to those who behave sensibly, such as savers, but the fragile nature of the recovery meant that there could be no big bang give-aways, such as raising the 40% tax threshold. As the recovery strengthens Government will be able to do more for people, but the economic fundamentals will only improve if the country’s finances are managed prudently. The outlook is still perilous for Britain, but a Conservative Chancellor can carefully navigate her towards the promise land – or so Osborne wants you to believe. The 2015 General Election will be decided by whether enough voters are convinced of this.
Our Director, Ryan Shorthhouse, was a part of Conservative Home’s Budget panel. Here is his reaction to the Chancellor’s statement:
“Stick with us, the Chancellor is saying: we’re the sensible ones. And we’ll reward sensible behaviour – savings in particular. Generally, this was a conservative budget, with a small and a big c. Thankfully, childcare was a big winner, with families on nearly all incomes benefiting from a generous package of measures. HM Treasury sees childcare as a treasure chest, crucial for boosting parental employment and children’s education, thereby enhancing individual and national prosperity in the long-term”
Bright Blue Budget Campaign Wins
- Increasing the level of the tax-free personal allowance from £10,000 to £10,500.
- Extending the Pupil Premium, which helps children from disadvantaged backgrounds get a better education.
- Stating that the country can afford, and should provide, a real terms increase in the National Minimum Wage.
