Alan Campbell MP: Changing who the economy works for
The recent budget is unusual in that it was delivered at the end of November and therefore later than previous years.
What stayed the same however, is the fundamental challenge facing every Government, which is the balance between short term measures affecting the cost of living and the longer-term challenge of structural changes to the economy.
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.