The national budget is always a massive talking point for the UK public, although it may not affect everyone equally. For most budgets, it is simply setting out a plan of spending intention, which may not even concern all of the UK. A few days ago John Healey’s new budget was released, but what and for who does it actually change?
Just a small point before we dive into the budget, my aim is not to assess whether the budget is truly beneficial or not, but rather to point out logical flaws or sound reasoning. You as the reader can make your own decision. However I will say that overall it has been a mediocre budget, nothing life-changing, nothing detrimental.
If someone was to use a single term to describe the aims of this budget they would be perfectly suited to use ‘Cost-of-Living’. The phrase we have heard a million times, yet very few things have been implemented to actually tackle it. Well Burnham’s government and the exchequer under Healey have definitely attempted to tackle it. Whether it will be successful is up for debate.
In terms of the larger spending trends, they aim to potentially slash the annual government debt by half, which although is very wishful in its aim, would benefit the produce of taxpayers money. Banks and gambling companies will be slapped with a tax surcharge, essentially meaning they will have to pay more. Whether you love or despise the financially massive and morally questionable industry of banking, it is surely a step in the right direction. HSBC recorded massive profits this year with a total revenue of around 5 billion. Overall it looks like we are taking a step back and trying to save the pennies as a country.
In terms of individual benefits for the majority, Energy and gas will be applied as a pay as you go ideology. No more wasted energy or higher fees. This comes alongside an extra £100 payment for households in the band A to band D of council tax. Personally I think it is a great idea to support those in need over winter, but equally just chucking a flat sum out to a range of different people is a sort of blanket response. Some may need more, some may need it and not get it, and many who get it will not even require it. A sort of temporary bandaid on a much larger issue.
Minimum wage is going up again, although real wages won’t actually make things cheaper. At least fuel duty will be frozen until 2027, saving us 5p a litre. Considering the current wars causing fuel shortages, a little help with fuel could go a long way.
If you are thinking of buying a first time home, you might be glad to know it is possible now. Well kind of. It’s a sort of catch 22 with the new first time buyers scheme. You only need 2.5% deposit to get a house but it has to be a new build (often ropey in terms of quality) and a large equity loan. So yes you have a house for cheap, but you won’t make profit selling it or paying it back quickly. A very grey solution to a harder problem.
Pubs and small business will receive tax rate relief so they can stay afloat, yet pints are set to get more expensive again. This also includes a 15% to 35% relief for nightclubs and bars. Going out is staying on the calendar for now, it just will be more expensive for the customers. Finally there is a plan to remove part of the triple lock pension, which while unpopular, will reduce the astronomical amount of money spent on pension interests rates each year.
There are many more changes in this budget for which I do not have enough time or words to cover. This can be seen in detail on the government website if you are interested. As all parts of the media I would consider myself biased, so form your own opinion on the budget and whether you think these are positive or negative alterations. Personally I think it has been okay. There are a lot of temporary fixes, that will come back to bite us in the future. As well as a lot of lacklustre promises, however the ideas are there and the intention to aid the hardest-hit people of the UK is admirable. We will have to wait to see if it lives up to the promises.
