Chancellor John Healey is set to deliver the Budget tomorrow, but his record of warm words followed by painful measures has drawn sharp criticism. The article, written by Harvey Jones, argues that Healey has repeatedly offered comfort before delivering what it calls "maximum pain" to various sectors.
Defence Spending U-Turn
The piece highlights Healey's resignation as defence secretary in June, when he accused Prime Minister Keir Starmer of failing to commit the resources needed to defend the country. At the time, this was seen as a rare example of a politician putting principles above career.
However, the article notes that Healey, now at the Treasury, has not set out plans to meet the defence spending target of 3% of GDP by 2030. Instead, the Government has pushed the roadmap into next year's spending review, despite what it describes as a "shooting war in Europe."
Bank Windfall Tax Concerns
The article also details Healey's praise for banks on October 15, when he told journalists they were "hardwired into the economic fabric of this country and our future prospects" and part of the "jewel" in Britain's economic crown.
Later that same day, Treasury leaks suggested Healey was preparing to increase the windfall tax on bank profits. The piece points out that banks already face a combined tax rate of 46.2%, compared to 27.9% for Wall Street rivals, and argues that further taxes could hit investment and lending.
Pub Duty Pressure
Finally, the article recalls Healey telling ITV News in August: "We recognise the pressure that pubs and other businesses are on." Reports now suggest he plans to add another 2p of duty to a pint, at a time when pubs are closing at a rate of one a day.
The piece concludes by questioning which other industry might receive soothing words before facing the chancellor's "hatchet" in the Budget.
