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Given the bleak election forecast for the Conservative Tories, Chancellor Jeremy Hunt faced an important rescue mission. Shortly before the near death of the Conservative government, he had to revive British voters’ favor. Shortly after midday in the House of Commons, he conjured up a veritable potpourri of tax measures from the famous red budget suitcase that are intended to make everyday life for the British people better and cheaper.
40,000 pubs and their customers should benefit from the alcohol tax being temporarily frozen. Likewise diesel and gasoline taxes. This is intended to relieve the mobility burden on British taxpayers. The wage deduction for the state healthcare system will even be reduced. The employees primarily benefit from this. Pensioners do not pay social security contributions in Great Britain.
The loss of income of the equivalent of around 10 billion Swiss francs is to be compensated for, among other things, with an “efficiency program”. According to the Chancellor of the Exchequer, digitalization and artificial intelligence should relieve the strain on today’s ailing healthcare system and make it more productive.
There is no money for lower income taxes
A reduction in income tax would have been more politically potent. An election promise from the Prime Minister and also an urgent wish from the conservative electorate. But there simply isn’t enough money for that. Even today’s tax gifts are not free. They must be compensated for with additional income and savings.
The opposition will probably have to deal with this problem one day if it wins the elections. The Labor Party reacted accordingly angrily: The Conservatives had once promised to repair the roof. After 14 years in power, they broke all the windows and ultimately burned the entire house down. That’s not surprising. In an election year, the presentation of the budget is not a rational economics lesson, but a political manifestation.
The outcome for the conservatives still remains open
In African countries, people talk about “handouts” when politicians hand out small envelopes with money before elections. In our latitudes, such gifts are disguised as tax cuts.
The elections will show whether they are enough to convince the impatient conservative electorate and the disillusioned British public.