So we’ve got oursleves this fancy new coalition govt, all fresh-faced and, as yet, unsullied by sleeze. It has to be said that we certainly needed a change, Brown’s over-controlling, civil liberty eroding, regime would have become even more insufferably arrogant if they’d won the election. So now we have a Conservative-Lib Dem coalition, and although in many ways I think they’re odd bed fellows, I’m starting to think that it is probably the least bad outcome we could have realistically had from the election; my big hope is that the Lib Dems will be willing to stick to their principles at least to the extent of forcing the Tories to have a conscience. (Which I guess would make Nick Clegg Jiminy Cricket to Cameroon’s Pinocchio.)
Still, as the lesser partner in the coalition it’s only realistic that the Lib Dems will have to accept a large chunk of compromise, and will have to, no doubt, support policies which they wouldn’t naturally be inclined to put in their own manifestos. At least that’s what my inner pragmatist has to keep telling the part of me which is a little upset about my vote ending up shoring up a party who I didn’t want in power. Ho hum, it’s an imperfect system, although the possibility of electoral reform before the next election is a consolation, and I’m very glad that the Lib Dems (mostly) stuck to their guns on that point.
The other Lib Dem policy which I’m pleased to see survive the horse trading was the increase in the income tax allowances. OK, so it’s likely to be trickled out over several years (& I certainly won’t be holding my breath to wait for the allowance to hit 10k) but I really believe that this is one of the best moves, in terms of relieving poverty, which any govt could make; forget the Tax Credit scheme, that was a dishonest PR scam from the get go, its main purpose seemingly to be that it allowed Mr Brown to crow about how he was helping the poorest in society, while actually making a system of such byzantine complexity that many who were eligible for payments never bothered to try and claim!
I’ll be interested to see how the overall tax burden shifts under this new Govt, and, for anyone else who’s interested, Coutts bank have a pretty useful resource on their site which provides a clear and concise breakdown of the UK’s main tax rates, although their income tax section is probably the most useful for the average person in the street.
Anyway, we’ll have to wait for Osborne’s emergency budget on the 22nd June to find out exactly how the financial future of this country is likely to look. There’s been a lot of talk about cost cutting, the tightening of belts, and times of austerity, so we’re obviously being prepared for the worst, and the internal governmental cost cutting measures which have already been widely reported are surely more about fostering the Tory campaign mantra of “all being in this together” than actually making any significant dent in the national debt.
Still, govt certainly got pretty bloated under New Labour, so it’s probably a sensible move, even if I’m not convinced by the over-arching Tory strategy of starting to make cuts while our recovery from the recession is still so potentially fragile.
Of course the news, from the Office of National Statistics, that the Govt spent £7bn less last year than predicted might make Osborne’s first budget a little less stark than it would otherwise be, but if, as chancellor, you have to put tough measures in place the best time has surely got to be just after an election, so the electorate will have time to forget, and calm down, before the next election. Guess we’ll find out in about a months time…
Tags: budget, income tax