Cost of Living crisis

Morning Star: We need an emergency Budget – but there’s no relief in sight

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Chancellor of the Exchequer Jeremy Hunt leaves 11 Downing Street, London, with his ministerial box before delivering his Budget in the Houses of Parliament, March 6, 2024

BRITAIN needed an emergency Budget today, one that addressed the profound crises facing local authorities, healthcare, education, you name it.

It got nothing of the sort. A scattering of headline investments like the “NHS productivity plan,” focused on IT systems and ignoring the staff shortages that have led to waiting lists seven million long.

A 2p cut to National Insurance that benefits higher earners more and, by reducing the tax take, tightens the funding squeeze on essential services. Bigger cuts to capital gains tax, incentivising the property speculation that has helped drive the housing crisis.

It was a complacent Budget, Chancellor Jeremy Hunt spending longer trying to explain away Britain’s “technical” recession as some kind of economic success (the same Chancellor said last year he was “comfortable” with Bank of England policy causing a recession to reduce wages) than he did outlining new measures that might make a difference.

Britain has “turned the corner” on inflation, he claims, though prices rising more slowly doesn’t mean prices falling and millions of us know what we pay for food, energy and a roof over our heads has soared in recent years.

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There is plenty of money. Last month Britain’s Big Four banks announced their highest annual profits ever.

We see record-breaking profits in the energy cartels, big agribusiness, soaring profit margins in the FTSE 350 table of big companies. These aren’t “difficult economic circumstances.” It is class war.

And if Labour won’t strike a blow for workers in that war, unions will need to find another way to change our country’s direction.

Continue ReadingMorning Star: We need an emergency Budget – but there’s no relief in sight

Hunt gambles on tax as services crumble

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https://morningstaronline.co.uk/article/hunt-gambles-tax-services-crumble

Chancellor of the Exchequer Jeremy Hunt leaves 11 Downing Street, London, with his ministerial box before delivering his Budget in the Houses of Parliament, March 6, 2024.

PUBLIC services are at still greater risk as Chancellor Jeremy Hunt gambled the Tories’ election hopes on a last-ditch tax-cutting Budget.

Mr Hunt announced a 2 per cent cut in National Insurance in a bid to put more money in workers’ pockets before Britain goes to the polls later this year.

But the price will be a major squeeze in public spending in the next parliament, with many department budgets likely to fall in real terms.

The Chancellor also abolished the non-dom tax rule which lets the wealthiest avoid paying taxes on overseas earnings, a key Labour pledge, and brought more families within the scope of child benefit payments.

The Budget therefore leaves Labour more politically denuded than ever — it will either have to find other ways to raise the money it had planned for public services from scrapping the non-dom loophole, or more likely drop residual spending commitments altogether.

Labour leader Sir Keir Starmer told MPs that Labour supported the National Insurance cut too, leaving the parties exchanging rhetorical sound and fury on economic policy but with no significant differences.

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https://morningstaronline.co.uk/article/hunt-gambles-tax-services-crumble

Continue ReadingHunt gambles on tax as services crumble

‘Pre-election gimmicks’: How trade unions reacted to the Budget

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https://leftfootforward.org/2024/03/pre-election-gimmicks-how-trade-unions-reacted-to-the-budget/

From missed opportunities to ‘Tory hot air’, trade unions weigh in on the Spring Budget announcements

Responding to Jeremy Hunt’s spring budget statement today, union leaders have shared their thoughts on what it will mean for workers across the UK, with warnings of deepening crises in their respective industries. 

The Chancellor was condemned for failing to announce proper investment in public services, with trade union leaders accusing him of using “deeply cynical” pre-election “gimmicks”.

Union leaders had already warned the Chancellor of the need to provide extra cash for public services, as Jeremy Hunt has been blasted for falling well short of delivering for working people. 

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https://leftfootforward.org/2024/03/pre-election-gimmicks-how-trade-unions-reacted-to-the-budget/

Continue Reading‘Pre-election gimmicks’: How trade unions reacted to the Budget

5 key takeaways from Jeremy Hunt’s budget

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https://leftfootforward.org/2024/03/5-key-takeaways-from-jeremy-hunts-budget/

A budget totally out of step with what people want and need.

Today [yesterday] saw Chancellor Jeremy Hunt deliver his much-awaited Spring Budget. The stakes couldn’t be higher, with the economy in recession, millions struggling to make ends meet and a forthcoming general election.

In what is likely to be the last budget, and possibly the final fiscal event before the general election later this year, Hunt sought to present a rosy picture of the economy, one which is totally divorced from reality.

A budget totally out of step with what people want and need, opinion polls have repeatedly shown that the British public prefer investment in public services rather than tax cuts. There was no bold and radical plan to get the UK economy out of economic stagnation, to tackle poor productivity or to improve public services.

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https://leftfootforward.org/2024/03/5-key-takeaways-from-jeremy-hunts-budget/

Continue Reading5 key takeaways from Jeremy Hunt’s budget

Greens say that people can see through pre-election Budget tax bribes

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Image of the Green Party's Carla Denyer on BBC Question Time.
Image of the Green Party’s Carla Denyer on BBC Question Time.

“People can see through these pre-election tax bribes that will have to be paid for by cuts to our NHS and other vital public services,” says Green Party co-leader Carla Denyer. 

Denyer said: 

“People are crying out for investment in social care, in our NHS and in dentistry. We needed a ‘care full’ Budget but have ended up with a careless, reckless Budget. 

“Chancellor Jeremy Hunt is attempting to bribe the electorate through tax cuts, which can only mean more pain for public services that are already on their knees.   

“People won’t be richer, healthier or happier because of this Budget. People know a con when they see one.  

“The Fairness Foundation found only 16 per cent of the British public and 17 per cent of Conservative voters would support tax cuts if it meant public service cuts.

“Councils are going bust up and down the country, NHS waits are getting longer, dentists can’t be found, while anyone travelling by train or bus, or visiting our town centres feels the lack of investment all around them. 

“These headline tax cuts will do nothing to reverse the decade-long, real-terms wage freeze most workers have faced under successive Conservative governments. 

“The Resolution Foundation says those earning up to £19k pa will be losers because of freezing of tax thresholds, while pensioners and those on benefits gain nothing at all.

“There is wealth in the UK, but it is distributed unfairly. Our economy is failing because our wealth, rather than circulating and benefiting everybody, is held in the stagnant assets of the super-rich.  

“So, we needed a Budget that released the money available from a wealth tax to invest in the green jobs of the future, to cut NHS queues and restore nature and the places we live and work. 

“We needed a Budget that introduced a Wealth Tax, and reformed Capital Gains Tax and National Insurance to raise over £50bn per year.

“That would have provided the vital public investment our country is crying out for. 

“Now we have Labour huffing and puffing but offering no real alternative to being locked into a Conservative-forged cuts straitjacket. 

“Thankfully, a General Election is coming where people can vote Green for the real change that will lead to a fairer, healthier and more caring country.” 

Continue ReadingGreens say that people can see through pre-election Budget tax bribes