IT was a modest Budget with Chancellor John Healey attempting to sound positive and to portray the government as being on the side of the ordinary person as they battle the global economic storms, particularly the ones whipped up by Donald Trump’s war against Iran.
The long range forecast was gloomy, though, with the Office of Budget Responsibility saying there’s a “pretty grim picture” for living standards as inflation and borrowing continue to plague the country.
Many of Mr Healey’s minor measures are welcome – no one will shed a tear for the abolished gas standing charge – but how much political credit will he get for them?
As pump prices escalate, no one will notice petrol not going up by 5p-a-litre, and the £100 given to every council taxpayer to help with energy prices will be overwhelmed by the predicted £300 rise in January.
Mr Healey repeatedly offered “breathing space” to the beleaguered British public, but, by being modest, he has also bought his government breathing space until next year when the Milburn review will require big sums for welfare and the spending review will require massive money for defence. Modesty then will not work.
But at least there was nothing here to scare the horses – or the markets. For small mercies we must be grateful.
Tory leader Kemi Badenoch made an interesting point. She said Andy Burnham arrived in Downing Street "promising to reverse 40 years of neo-liberalism" but instead "we got 4p off gherkins".
Labour still has a large majority and a general election is still, probably, three years away. Mr Burnham is unlikely to be more popular than he is now.
Was this the moment to go big, for Burnhamism to be born by tackling welfare, student loans, defence, high street decline and taxation rather than just put everything on hold while we all draw breath?
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