Same old Tories, ey? Well, only if you believe the spin that the Left are pedalling.
The 2012 Budget has caused a lot of debate already, and its not officially announced until Wednesday. But lets have a look at two policies that almost seem certain to be included in George Osborne’s budget.
Cutting the 50p tax rate
There has been a lot of speculation over the past month that Osborne is set to cut the 50p tax band. His reasoning for this is that en masse people have avoided paying the tax. To clarify, tax avoidance is legal. Now you can complain that those avoiding tax are morally bankrupt and avoiding paying their dues to society until the cows come home, but regardless, its still going to happen. The tax rate was introduced by the last Labour Government as a temporary measure to raise extra revenue for the state. And yet, it is rumoured that this isn’t the case. Rumours are that the Treasury is losing out on £500m a month due to tax avoidance. By lowering the tax rate, the Government hopes to recoup more tax, which can then be used to redistributed to those most in need. £6bn a year is a hell of a lot of money! Even if these rumours turn out to be unfounded, if it turns out the 50p tax rate is losing even a penny in revenue for the Treasury it should be cut. To keep the 50p tax band would be a shambolic symbol that we in Britain are against success, we envy the rich and we oppose wealth creation. So yes, it is a tax cut for the rich, but when the dust has settled it will be society who has benefited.
Ending National Pay Bargaining
On Saturday it was announced that the Government would end National Pay Bargaining. The Public Sector in the UK is a sacred cow, much like the NHS. Any reform is met with staunch criticism. Six million people are employed by the state, a figure that in itself is incredible. In some areas in the UK public sector workers are paid 18% more than their private sector counterparts. Inequalities between the two sectors causes tensions between people. The details of the policy are still very sketchy, but localised pay should be praised, not blindly opposed. Public sector workers in the South East need to be paid more than their counterparts in the North East, it is common sense. The costs of living between the two regions are diametrically different, so it makes sense that their pay should be separated.
So there we go, don’t believe the torrid nonsense about the same old nasty Tories, put your brain into gear and see what the policies are really about!