Of the most consistently repeated messages given out by the Coalition Government since taking power, the first was summarised by outgoing Chief Secretary to the Treasury, Liam Byrne: “I’m afraid there is no money.” The second is George Osborne’s favourite: “We’re all in this together”.
So with the expectations management campaign helping the country brace itself – the axe within the Chancellor’s statement didn’t seem so bad when it fell.
Promises of an increase of £1,000 in the personal allowance to assist those on low incomes and a limited exemption from employer’s National Insurance for start-up businesses (at least those outside London and the South-East) helped to break up the gloom and will have been welcomed by those potentially benefiting.
It was never going to be a Budget trying to win short-term popularity. With this in mind, the coming months and the country’s economic performance will tell us if the “Unavoidable Budget” will carry unintended consequences. Read more