What makes this Budget so politically astute is how it all fits together. The four-year freeze on working age benefits and the cuts to tax credits are made palatable by the introduction of a national living wage. Meanwhile businesses’ potential objections to this wage hike will be muted by the cut in corporation tax to 18p and the hypothecation of vehicle excise duty to road improvements.
It is hard to define this Budget politically. There were plenty of things in there to please the Tory right, the commitment to spend 2% of GDP on defence in particular. But it was also one that made several raids on Labour territory in areas such as non-dom taxation and skills and a big land grab on the national living wage.
Now, this wage is not as high as the ‘living wage’ as defined by Citizens UK but it will still lead to a substantial pay increase for those currently on the minimum wage.
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in