The Point

Last updated: 27 June 2022.

Budget Round Up

Young engineering apprentice and RIC activist, Conor cheyne gives his view

George Osborne released his latest budget, one in which he has claimed that Britain has recovered from the economic meltdown of 2008 and is now continuing forward. While many on the right have commended him and the job he has done, we know that in fact the opposite is true.

It may appear to some that the British economy has recovered though this is incorrect, as no economy can fully recover without the recovery of its working people. Inflation is said to fall to 0.2% this year though in reality these fig ures cannot be relied upon to tell you if the cost of living is at an acceptable level. Everything has increased so very much over the past 7 years while wages have either stagnated or not improved at all. Even when they talk of wages increasing higher than inflation, if you minus the salaries of those who lead the City of London then salaries are still lagging behind and that is using Westminster statistics. Growth is measured by GDP and this is on the up and will take over debt as a % however this too is an outrageous way to measure the success of an economy as the dealings done by the billionaires and the multi-nationals skew this figures to a great degree.

Osborne also announced £30bn worth of cuts by 2018 which will destroy our already decimated public sector. In the meantime he has told us that corporation tax will be cut to 20% in a bid to help get more investment into the country, taking money from the poor and giving to the rich as we have seen time and time again that lowering corporation tax will not result in more jobs being created. He has claimed that tax loopholes will be closed to ensure that less is lost through tax avoidance but as long as accountancy firms are creating the tax laws, we will continue to lose money through avoidance. The companies operating in the North Sea are going to see a tax reduction which – once again – will be taking money out of the peoples hands and into the hands of a select few. We also find it disappointing that John Swinney publicly supported the move, especially so soon after the SNP dumped the reduction in corporation tax policy. It is not acceptable for taxpayers money to be used to goad billion £ companies into doing what they are supposed to do!

What is very frustrating – though unsurprising – is that the media focused almost entirely on the increase in the personal tax free allowance and the news for savers. Yes, an increase in PTFA is good however is it life-changing for those who have to chose between eating or heating their homes? No, it certainly is not and do these people have the means to save £1000? No, they don't. The PTFA announcement is a usual Westminster stunt, giving the people something laughable, taking so much more yet we thank them for it.

Once again we have a budget which favours the rich and spits in the face of the working class. I will leave it to you, readers, to make up your minds on the budget but now you have my 10 pence worth.