Dear Members,
This was an informative budget, that tells us that what the Conservative Party say, and what they do, do not always align.
- For a party committed to fiscal restraint, we have the largest public sector spending since the 1950’s. An extra £15Bn spent on government departments.
- For a low tax party, we have the highest taxes since the 1970’s
- For a party committed zero Carbon, they gave tax breaks to regional airlines, who deposit CO2 right where we don’t want it. In the Ozone layer
- Care for the Elderly? Removal of Triple lock pension protection. No winter fuel allowance against a spike in prices.
- For a party committed to enterprise – Nothing – No support for the vaste majority of firms that create the employment and generate the cash to pay the taxes that pay for all of this.
Rishi Sunack implies that he is reacting to the worst fiscal shock in 300 years. He forgets that this was entirely avoidable. (New Zealand deaths 28 – They stopped the planes. We did not) Further, rather than supporting business, as they claim, they have supported their revenue tax streams and put the businesses into debt with loans, whilst paying themselves full pay, to sit at home.
Herein lies the crux of the matter, we are spending money on the people who cause the problems and are taking it away from people who solve them.
Cost of living increases caused by increase fuel. (Petrol at all time high. For £1 a litre 16.67p VAT, 57.95 p Fuel Duty. petrol cost plus profit, 25.38p. Tax is 75% of the cost at £1 a litre). Sky high energy prices caused by a complete mismanagement of our energy policy, and wholesale sell off of our infrastucture (National Grid – EDF) to the French and Germans. Who now threaten to cut us off as part of fishing negotiations. And of course supply chain issues, a scenario manufactured by governments and bureaucrats.
Continued borrowing
These forecasts always show downward trends. However the reality is that they will contunue to run up our National Debt, and leave the bill to our children and theirs. Fiscally Responsible? More like reckless.
Quantitative easing
Running the printing presses, creates inflation, which in turn erodes our savings and forces interest rate rises which increase our mortgages and cause housing market crashes with consequences for the banks stress testing ratios. This is what happened in the 2008 crash. It will be interesting to see how the Bank of England votes today.
Covid 19
Noone knows what will happen here. What we do know is that our government did four things.
- They failed to protect us.
- They actively imported the virus by failing to stop the planes. (New Zealand stopped the planes. 28 deaths in total)
- They sought to profit personally from the supply of PPE. The Court ruled that their activity was unlawful.
- They continue to seek to cover up the problem. Declaring 45,000 new cases yesterday. The worst figures in the world. When the true figure from real data from Kings College London is double that at 90,000.
Bottom line is that it was private Bio Tech firms that saved the day with the vaccines. So in this budget, the government has taken away from those who solve the problems, and have given it to those in their own image, the people who failed to protect us and often created the problems.
Annual Growth
Interesting piece of stats below. The Government claims to have the highest growth. This is only because it is expressed as a % based upon upon the biggest low, created by their actions or lack thereof. If it was actual growth, the line to the right would continue to grow. Not collapse back to 1.6%
I hope that gives you an insight into what was going on behind the budget.
At the Chamber we are committed to raising the Quality of Debate.
“Educate and inform the whole mass of our people.
They are the only sure reliance for the preservation of our liberty.”
Thomas Jefferson 1743 – 1826
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