Thursday, 24 June 2010

Giving with one hand and taking back with the other?

So... after the much-advertised emergency budget on Tuesday, I'm just waiting to see what effect it has. I shall be better off by virtue of the extra £1k tax allowance, but worse off with the hike in VAT from 17.5% to 20%. It just remains to be seen to what extent the two cancel each other out.

All in all, I thought it was all pretty unimaginative, with nothing new that hadn't been tried before. If I'd still been at work I'd be a bit unhappy about the freeze in public sector pay: when I left I was only just earning more than the £21k threshold - it was below the National Average Wage then, and presumably still is. But there you go. Pretty much every Labour goverment since the War has financed its policies by spending money it didn't have and got into a fiscal mess as a result.

Remember Harold Wilson's famous quote about "the pound in your pocket hasn't been devalued"? Not much it hadn't!

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