It’s a balance few Chancellors have achieved particularly in recent years and as a result budgets have too often been followed by applying the spending brakes and resorting to damaging austerity. The need to address the cost of living remains a priority for this Government and is central to this budget. The cause of our national predicament is well rehearsed. Covid, war in Europe and a botched Brexit deal all contributed, made worse by the now infamous Truss budget.
This budget addresses some of these matters including £150 off energy bills and expanding breakfast clubs and free school meals. Increasing the National Living Wage by £900 helps young people and keeping the Triple Lock helps pensioners now. But it is also part of the wider, longer-term changes necessary by altering who the economy works for.
Changes affecting owners of higher value properties is a significant shift on who contributes more, building on the Non-Dom tax changes and VAT on private schools. These are the real tests of how a budget will be regarded long term and is more important than the predictable rows over process. Having done so without upsetting the markets and keeping MP’s on side is a useful first step.