So today
was budget day, one of the most important dates in the political calendar. The
Chancellor of the Exchequer stood before the House of Commons and detailed the
government’s economic policy for the next year. And what a budget it was, but
how will the policies announced today effect you? Why should you care about
today’s announcements?
Because
today George Osborne gave the rich the biggest pat on the back they have had in
years. George Osborne himself said that “It unashamedly backs business.” Backing business is not necessarily
a bad thing, but the businesses backed are the ones that created the economic
crisis and the ones owned by the rich. As I moaned about earlier this week ()
the Chancellor cut the 50p tax rate on earnings over £150,000 to 45p. He claimed
the rate earned “next to nothing”; making only a third of the original 3
billion pounds predicted. Call me stupid, but to me 1 billion pounds is a lot
of money. I am sure most people would call 1 billion pounds a lot of money.
When the UK
has a national debt of over 1 trillion pounds I do not think we should be
throwing away 1 billion pounds worth of income. But I explored the real
travesty of the cutting of the tax rate in my earlier blog post.
Another pat on
the back for the rich was the announcement that corporation tax will fall from
26% to 24% in April, and then to 22% by 2014. This decrease is meant to promote
business in the UK ,
and it may do this, but it also creates a whole in the budget that will have to
be filled. And as usual the people to pick up this bill will be those on low to
middle incomes. By lowering corporation tax, the coalition is stealing from the
poor and giving to the rich. Businesses care about one thing, making money, and
the budget today encouraged this view; ignoring the needs of society.
People rely on
pensions in order to be able to live once they reach an age at which they can
longer work. When someone retires at the retirement age they currently have a
larger amount of their pension money not taxed, compared to those who retired
early. From April 2013 this will no longer the case. This is where the
government have made up for their concessions to the rich. This is how the
Conservatives fairer Britain
works. They hit the most vulnerable the hardest. The government says this is
simply making tax laws simpler and not lose anyone money, yet the National
Association of Pension funds says that that between 2013 and the next election
in 2015, pensioners will lose 2 billion pounds in age-related tax allowance.
The coalition has grabbed money from the weakest in society and used in to plug
holes for the rich.
This budget
will affect everyone, and not just in the immediate future. At the start of the
budget, George Osborne announced that the UK will not enter a technical
recession, yet the measures implemented today will make those on a middle and
low income feel as if we are in recession. The coalition is punishing the
majority of society in order to make the rich that little bit richer. You should
care about today’s budget because it is a gross injustice. The government is
ignoring the people, and listening to the wallets of their friends. This budget
goes against all public opinion and will make your life harder, by making you
pay for tax breaks for the rich. The coalition has just created the knife and
is asking the public to stab it. Bravo Osborne, bravo.