George Osbourne third budget will be seen as an increasingly out of touch with the millions of people in our country.
We already know that George Osbourne is predicting he with borrow £150 billion more over this parliament that he said.
This year he has raised the tax allowance to £9205 and has cut the tax rate from 50p to 45p. The personal allowance increase will cost around £3.5billion, the top half of earners gets 70% of the benefit from the changes, this with the £2.5 billion cuts that have already announced in tax credits that effect the low to middle earners, we can see that far from helping low to middle income earners, this government has made their incomes lower.
The government believes that the cut in the top rate of tax will only cost £100million, this is an estimate and we cannot be sure that in fact this cut will cost more and this would undermine the financial neutrality.
In the small print of the government's budget there is a additional £10 billion cut to welfare spending, with housing benefit likely to be cut even more, we have seen in the recent numbers since the changes to housing benefit in London families living in temporary accommodation has risen by 26%. This is particularly pertinent as London's rented sector is more expensive, but if levels are lowered then the misery of these changes will spread to less affluent areas of the country.
In Shepton there is a real risk that we could lose our in patient beds, these particularly important to free beds up in other hospitals, giving easy access to relatives for locals who are ill. In the Budget we see a further £500 million claw back in NHS spending, at the time when the government is holding a top down reorganisation of the NHS that is costing billions and it is expecting the NHS to come up with additional savings of £20 billion, the government are handing out tax cuts to millionaires and P45s to nurses.
The governments intellectual argument is fundamentally flawed, they believe in trickle down economics, the wealthy will throw crumbs from their table and this will feed the majority, this is the rational to their economic strategy, they have cut corporation tax this helps large corporations, yet the majority companies are small to medium sized companies who generally will not benefit from the corporation tax cuts.
What was required was a budget for the Millions not the millionaires.
Unemployment is increasing, with youth unemployment above 20%, growth is only likely to be 0.8% this year, real incomes falling, petrol now £1.40 a litre or £6.30 a gallon.
This government is locked into a spiral of cuts, austerity is not working.
Everybody knows we need to rebalance our economy, less reliance on finance and services and more to manufacture and technology, we need an economy that uses money to create wealth for the many not the few, this needs active government not one of tickle down, voodoo economics.
We need a budget to rebalance the housing market, we need investment to build homes, this government has presided over the lowest house building, they are wedded to an ideological cause. This country is facing a housing crisis and the government like Ponchus Pilot stands on the side washing it's hands and will leave the disaster to.
George Osborne has given a £3bn tax cut to the richest people in the county – a tax cut worth over £40,000 for the 14,000 people earning over £1m. It tells you everything you need to know about this government that they're prepared to take money from pensioners and our NHS, while giving a tax cut to the richest people in our country."