In the wake of the Budget delivered by Chancellor John Healey, Nick Ferrari questions whether Britain is genuinely better off than it was four years ago. He argues that the Budget, intended to provide “breathing space,” instead sucked the oxygen out of the room, with key economic issues left unaddressed.
A Damp Squib Rather Than a Firecracker
Ferrari describes the Chancellor’s maiden Budget as “more a damp squib than a firecracker.” The £100 towards energy bills, he notes, will be wiped out when the price cap is lifted at the start of the new year. Similarly, the hike in minimum and national living wages may be undermined if employers respond by hiring fewer staff.
The Budget also failed to address critical issues such as defence spending, which led to Mr. Healey’s resignation as defence secretary last June. On this matter, the response was that the nation must wait until the spending review. Prime Minister Andy Burnham’s discussions about a new relationship with Europe were also criticised as aimless, with no clear plan to stimulate growth.
The Costliest Elephant in the Room
Ferrari highlights welfare spending as the biggest and costliest issue dodged in the Budget. This year alone, the welfare bill will rise by £19 billion to £353 billion, equating to 11% of the entire nation’s output. By 2031, this is projected to reach £431 billion.
People are signing on for benefits at a rate of 1,000 a day, and the number of young people not in work or education continues to grow. When asked how he would tackle this, Mr. Healey could only say “it will be done in a Labour way,” a phrase Ferrari questions, asking whether it means slashing winter fuel payments for the elderly or taking cars away from the disabled.
The Reagan Question
Ferrari draws a parallel to the 1980 US presidential debate when Ronald Reagan asked voters: “Are you better off than you were four years ago?” He argues that Labour can no longer blame “14 years of Conservative misrule” and poses the same question to the current government.
In a separate note, Ferrari celebrates England captain Harry Kane winning the Ballon d’Or, though the ceremony was delayed due to traffic caused by the partial pedestrianisation of Oxford Street. He also mentions the Alternative for Germany (AFD) party’s warning that the EU must reform or face a Brexit-style ‘Dexit,’ and questions the effectiveness of government spending on homelessness, noting that £870 million is being spent on an estimated 4,600 rough sleepers, equating to £189,000 per person.
