For me, this budget goes some way towards rebalancing the economy. The last Government left the country in almost financial ruin and have come up with no credible policies in opposition. The chancellor had very little to play with in his budget but I think the steps he is taking are the right ones.
This was definitely a budget influenced by Lib Dems. It was pleasing to see how many of our policies made an appearance in the budget, particularly the increase in the personal allowance over the next three years.
The budget also provided confirmation of the go ahead of the Green Investment Bank which is a welcome move. People have complained that the budget could have been a lot ‘greener’, I agree but think that green issues will be a better budget focus when we are out of the danger zone with the economy fully back on track. I look forward to future budgets when we are in a financially stable position and the Chancellor can be environmentally innovative with his budget.
For me personally the content on apprenticeships and manufacturing were very welcome. The UK used to manufacture more than three times the current output of manufacturing, but in recent years we have become a service industry importing things we used to make. We must get Britain making and exporting things again!
Manufacturing growth has bucked the trend recently with consistent growth. In January, manufacturing output in the UK increased at its fastest year-on-year pace since November 1994. We must maintain and build on this. That the budget recognises this is good news and I am extremely hopeful for the future of manufacturing in the UK.
One of the problems the industry has faced however is the lack of a skills base. Companies are expanding but can’t find the staff they need and some are sending big jobs overseas as they simply cannot find enough highly skilled staff. This budget goes someway to addressing that issue by creating an additional 50,000 apprenticeship places over the next four years.
Not only will the creation of these apprenticeships help to provide a strong skills base in the UK, they will help young unemployed people into the workforce. Young people have been hit unfairly hard by the economic crisis and by creating £180m worth of apprenticeships along with work placements we are not only investing in their future but in the future of this country. It’s fantastic to think in 4 years time, there will now be a further 250,000 young apprentices in the UK learning invaluable skills.
It has been proven that we can no longer rely on the banks to hold up the economy. Our economy is fragile and weak so we must ensure that we have strength across the board in many different sectors. Small and medium size businesses must be supported and I think this Budget gives a lot of concessions to SMEs to help them develop. One of the ways in which they will receive help is with tax breaks for research and development. I am sure this will appeal to many businesses as it is an issue which has been raised with me a number of times in the past 8 months, including by businesses in my own constituency.
It’s also about time that some of the burdensome regulations are lifted, and tax simplified. We have become a nation of red tape, rules and regulations which hinders business and growth. Plans to integrate the operation of Income Tax and National Insurance Contributions are adventurous and if successful, very welcomed. George Osborne could use this budget as a beginning for some radical and legendary tax reforms. As the Chancellor said, we need to show that the UK is open for business and I for one welcome this budget as a step in the right direction.
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8 Comments
While acknowledge and the welcome the announcments regardings apprenticeships, I am concerned by the lack of mention of the EMA replacement in the budget. This appears to have disappeared in recent months.
We talk about the lack of skill sets that British businesses complain about, but with the removal of EMA and the focus of Gove’s reforms on “academic” subjects, once again I fear this budget shows the lack of joined up thinking across Whitehall.
I am afraid that the following comment is simply not good enough; “People have complained that the budget could have been a lot ‘greener’, I agree but think that green issues will be a better budget focus when we are out of the danger zone with the economy fully back on track. I look forward to future budgets when we are in a financially stable position and the Chancellor can be environmentally innovative with his budget.”
Global warming is happening now and is more important than anything else that the government is tackling. There should be no excuse for delaying what needs to be done. Delay now means it will be even harder and more expensive to tackle later. To say we “could do more later” is a false economy, and yet it is always why governments never do enough on this issue. I remember campaigning against this kind of attitude in the 1980s as a Young Liberal. I am appalled to see comments like this all over again, I might as well not bothered. I also note that nick Clegg failed to mention the environment in his last 2 leader’s speeches.
Would you have written this article if the Tories had had a majority government and produced this Budget, and the Lib Dems were still in Opposition?
I agree with most of this but I think the decline of manufacturing has been exagerated, and don’t think this:
“The UK used to manufacture more than three times the current output of manufacturing” is correct.
The PWC Report on Manufasctring in 2009 found that he value of manifactirun was at an all time high and we were the worlds 6 largest manufacrter.
What is true is that the low value manufaxturing which emplpyed large number sof people has gone offshore and that the relative share of manufaxtruing had declined. So of course the Coaltion is right to do all it can.
http://www.pwc.co.uk/eng/publications/the_future_of_manufacturing.html
A good article Gordon; there’s lots of Lib Dem economic policy being implemented. I keep plugging it, but many commenters here should trouble themselves to read Vince Cable’s pamphlet for Reform (http://bit.ly/fIXMKM), along of course with The Orange Book (http://bit.ly/gRtUdn).
@EcoJon
Labour, when introducing the higher rate of Winter Fuel Allowance, said the measure was temporary (http://www.legislation.gov.uk/uksi/2009/1489/contents/made); odd that you criticise the coalition for allowing the temporary increase to lapse, implementing a cut a year later than Labour had indicated and legislated.
Andrew, why does it matter in the slightest what Labour would have done? Does that make the failures of this government acceptable because a hypothetical Labour government may have been worse?
@John Mc
Do you not see a difference between deciding maliciously to take something away from people, and deciding not to offer something extra by spending money that was never expected or budgeted for?
I hope you realise Gordon the effect of trebeling tuition fees will have a negative impact on young people.I can see no influence of lib dems on the conservative led government.This policy will hit hard those students who come from families whose parents earn modest incomes.This is a real kick in the teeth for hard working folk who want their children to do better.