That wonderful “Old Darling”, Lord (Norman) Lamont, who had hitherto held the dubious accolade of the Chancellor who had hiked taxes to the highest ever level, has issued a scathing rebuke of Rachel Reeves that many may have missed in the furore over her Budget on Wednesday.
He warned that Ms Reeves was taking a “big gamble” with the economy, stating: “It is a big increase in spending, and I am deeply sceptical of whether it will make any difference to growth,” The Tory peer thus maintains the Artful Dodger’s tax raid was unnecessary. I would suggest it is all that and wholly unscrupulous too!
“The tax increases genuinely stabilised the economy in 1993, whereas here I don’t think there is a genuine black hole, and I don’t think the economy is unstable.”
At the time those tax increases launched the equivalent of a 38.5 billion quid raise when accounting for growth in the cash size of the economy. This was, of course, in the wake of the 1992 sterling crisis dubbed Black Wednesday.
“They [Labour] are just creating this myth in order to justify moving to more of a European model of higher [spending] and higher taxation”, Lord Lamont concluded.
But how about the impact of all this fiscal chicanery? What does it all ultimately mean? Reeves, as if playing to an audience of enraptured leftie groupies, boldly intoned “Invest, Invest, Invest”. Jolly good! But “invest” in what exactly, Chancellor? Well, let’s see.
There’s a predictably mouthwatering amount of 25 billion flung at the NHS (with more to come in the foreseeable future, apparently), and with schools getting a whopping 12 billion. This will be partly funded by a 32 billion quid borrowing binge, which is expected to drive the annual debt interest bill to a stratospheric 122 billion nicker by the end of the decade.
Many initial comments suggest that only those paid the minimum wage would be shielded from reductions in pay growth as a result of the employer upward yank in NIC. The Government has also committed itself to “protect” public sector workers from the tax raid costing us another 5 billion quid for good measure.
As stated, rife with tricks and very thin on treats. Two-Tier and the Artful Dodger have dispensed yet more of their newly discovered “bamboozleoid” laced cocktail of disingenuous spin. There is very little further detail of HOW they intend to spend our money with such blatant whimsicality.
Conversely, those of us who are in the firing line and due to get clobbered have a detailed and unequivocal list of nasties where maximum pain is to be inflicted. And even that doesn’t immunize “working people”. It doesn’t benefit them either, short term, long term, or at any time for that matter! In a true spirit of Halloween ghoulishness, one is greatly tempted to intone…. “May Labour be plagued with mythical grizzly creatures as just reward for their spite and arrogance”.
The only ones with smiles on their faces after this fiasco are to be found at Congress House, doubtless after not only being given a heads up, but signing it off too.
Broken promises, outright falsehoods, and opportunistic political grandstanding are the stark realities of this budget statement. Takes telling porkies to a whole new level, doesn’t it?
One thought you might want to consider is this. Without there being an appropriate environment for the creation and maintenance of genuine wealth, sustainable growth is ultimately an unattainable pipe dream. The absence of suitably conducive conditions for wealth creation always results in a consistent failure for maintaining any sustainability.
So, with what do we finish up? Typical Labour tax and spend they blame on lax Tory fiscal oversight has to top the list. Squeezing more money out of people who can least afford it.
Runaway borrowing adding billions to the national debt. Stifling economic growth by penalising those who make that possible, whilst rewarding those who contribute the least to the economic architecture. The chronicle of foolhardiness is endless.
Lets be clear, there should be no issue with public servants being properly recognised for the vital role they, nor any functions they fulfil in delivering our public services. But without a basis of wealth creation to make this possible in the first place it cannot possibly generate any long-term benefit. It’s that simple.
Political expediency pandering to the unions and their support base is what Starmer and Reeves, abetted by the rest of the Labour faithful, are focused on. It’s simply nothing more than a cynical double-digit salute to the rest of us. Shame on them all!
