Clearly the new Chancellor has unbridled the self-imposed shackles of the former Conservative regime and is certainly going for broke. Even if it means that borrowings will increase.
Although there was precious little detail as to the planning reforms by the Truss/Kwarteng partnership, I am sure that a much-needed hatchet will not be far away from these archaic practices before too long.
The bold Stamp Duty changes, at the lower end of the market, will greatly assist first time buyers, however, it’s all very well boosting demand but supply needs to increase commensurately otherwise the vulnerable will get further disenfranchised as values ‘go nuts’. Where were the extensions to Help-to-Buy which has greatly assisted the purchasing of affordable homes?
Releasing surplus government land is a welcome measure but an ingenious funding mechanism to mandate the building of new affordable homes would have been welcome, to kick start the process of dwindling supply.
I agree with the Shadow Chancellor that the ‘greedy snouts’ of the speculators should be heaved from ‘the trough of avarice’ and, as such, I hope the Chancellor will ingeniously restrict these Stamp Duty ‘Red Cross parcels’ to genuine primary first time buyers.
Although the draconian SDLT rates at the higher end were left alone, which are particularly irritating to foreign buyers, I can understand the Chancellors reluctance to reduce these, even if it produced more revenue. Looking after the privileged is not a good look for the new regime.
Hallelujah UK Ltd is Back in Business
Unabashed, dogma-free reforms in today’s mini budget, are reassuringly good for business and is just the medicine we need, as recession looms.
Getting rid of the EU inspired bankers bonus cap is absolutely spot-on, particularly given that the UK economy is made up of 85% service providers, with the largest and most coveted banking sector in the world.
This signals a green light for inward investment. It never worked as it was intended and it was introduced as a legacy of resentment to this much unloved sector. Using the new freedom of Brexit, let’s hope this is one more dividend to be enjoyed in the new era, even if it is a ‘red rag to a bull’ for the class war warriors.
Eliminating the higher rate of Tax surcharge gets us closer to the ‘Thatcherian fiscal model’ which demonstrated, conclusively – as did Arthur Laffer – that taxation beyond 40% raises no more money for the Exchequer and is the inane fiendish work of the left-wing fraternity, who want this revenue raising device to be an ideological penalty on success.
The VAT facility for overseas consumers was a foolish inspiration wafting from Brussels, and retailers in this country, particularly in the jewellery sector, will be delighted to see its demise and not a moment too soon. It raised no money and was just a mindless European vestigial obstacle to business.
Subsidising the hyper-inflation of energy prices using government borrowing was a more than welcome innovation and who knows, the hike in these prices could diminish in the forthcoming months, as the speculators become less feverish. Vulnerable families will breathe a sigh of relief at this bold measure, particularly as the colder months are almost upon us.
I must confess a wry smile when the new arrangements for balloting members during strikes, of any offer made by the employer, came up. Overtures of George Orwell’s Animal Farm and the demise of Arthur Scargill came to mind, when we see the strutting of militant union leaders welding unbridled power over their members, who invariably are more moderately inclined, have no political interest to punish their bosses and just want a fair wage settlement. Can you blame them!
Anyway, why shouldn’t the union members be given a greater say in the negotiating process and thereby avoiding debilitating strikes driven by spitting, hate demonised, union leaders?