At last, the waiting and endless speculation is over but as Rachel Reeves sat down the reaction from some quarters was like a bunch of greedy children disappointed that their presents weren’t as many or as big as they’d expected. While economists, businesses and tax experts will have much to scrutinise in the coming weeks there were some significant measures that aren’t getting the same headlines but will make huge differences to many people.
Increasing the minimum wage and the amount that carers can earn before they lose benefits alongside a reduction in how much can be taken from universal credit to pay off debts could be life changing. Setting aside money to compensate victims of the blood contamination and Post Office scandals will hopefully mark an end to decades of fighting and go some way to helping those affected get on with their lives.
Changes to stamp duty on second homes might be tough for investors and speculators often able to outbid people who want to buy homes to actually live in and along with increasing tax on buying additional properties but not on selling them could have a positive impact in areas where local people are priced out of home ownership and second homes have hollowed out so many towns and coastal areas.
Retaining the freeze on fuel duty might not be very green but will be a big relief to many, particularly in rural parts of the country.
Toughening up systems to crackdown on tax and welfare fraud and the imminent announcement of a covid corruption commissioner sends a clear message to those who have had their fingers in the public till for too long. While the biggest cheer in the Commons came at the announcement of a cut in the price of draught beer, keeping the 40% relief on business rates for retail, hospitality and leisure was an indication that the chancellor had been listening. And that, I think was what came through in her budget. Of course there are uncertainties and worries ahead, not least for family farmers, medium sized businesses and many other sectors but overall there was a sense that this budget was based on the principles of helping those at the bottom, reinforcing the dignity of work, trying to repair some of the damage to public services, supporting the regions and creating stability for the next few years. The elephant
in the room remains social care and we have yet to see whether there will be changes in the housing sector that will be realised quickly. After a very wobbly first few months in power, it may be that Rachel Reeves hasn’t just made history by being the first ever female Chancellor but by setting out Labour’s framework for the future. While Sunak glowered and Hunt seemed even icier than usual perhaps the most surprising intervention from the Tories was the comment of their memorably short-lived former chancellor Kwasi Kwarteng; “We Tories have to be honest – Rachel Reeves is dealing with our mess.” And that should never be forgotten.
