Naming the Budget
- 10 Mar 08, 12:58 PM
Journalists can't resist giving budgets titles. Already many have, rather absurdly in my view, started to call this week's offering a "Green Budget”.
Unable to resist the temptation, let me suggest a better title - the “Repairs Budget” (yes, I know you can do better so please let me have your suggestions). Why? Since the aim of this Budget will be to make a number of crucial repairs:
• The hole in the government's finances. Alistair Darling has made clear there'll be no short-term rise in taxes (that's what he means by saying that fiscal policy will back up monetary policy). However, he's likely to set out policies that will increase tax revenues over time. Don't expect these to be labelled tax rises (deary me, no). They will, instead, be heralded as measures to tackle climate change and the binge drinking culture.
• Gordon Brown's reputation for economic competence. This took a knock thanks to Northern Rock, last autumn's "Magpie Budget" (in reality the pre-Budget report) which "stole" Tory proposals to cut inheritance tax and tax non-doms and the bungled handling of capital gains tax changes.
• Alistair Darling's reputation. Damaged by all the above and by replacing a successful well known chancellor at the very time the economy turned, Mr Darling will want to restore his connection to the phrase that followed him throughout his ministerial career - "a safe pair of hands".
• The government's relationship with business. The poor handling of the announcements on non-doms and capital gains tax has led to a loss of faith in ministers in the business community. Gordon Brown's business Goat, Lord Digby Jones, has almost said as much. His old chums at the CBI have said so explicitly. The Tory vultures are waiting to pounce.
• Labour's reputation for tackling child poverty. Ministers will not meet their target of halving child poverty by 2010 with their current policies. Campaigners accuse them of putting tax cuts for the rich ahead of meeting their promises to the poor in the pre-Budget report. So, whether through changes to tax credits or measures to tackle fuel poverty, expect action here.
