Looking at the Budget
We now know that real disposable weekly earnings are being squeezed, most particularly for the lowest income earners, that child poverty has risen, and that 5.3 million have been hit by the recent tax changes. On top of that the savings ratio has fallen to the lowest level since the early 1960s, as people feel the spending pressures. Our trade balance is the worst on record.
On the surface, rising house prices do induce a feelgood factor, and has spurred on consumer spending, but underneath it all, our productivity and competitiveness are not matching the global economic and business challenge of the 21st century. The overall tax burden level is at the highest level ever.
The Budget cheered up Labour backbenchers for 24 hours, but the reality now looks much different. The huge volume of increased taxation has not been matched by improvements in the public sector. The Budget did not enhance the reputation of the Chancellor, and the mutterings in the Commons about a stalking horse candidate against him have certainly increased. All you see is anxious small groups of Labour parliamentarians huddled together in intense conversation.