U Turn if you want to ....
Some good news from the government for a change - they have abandoned their plans to allow workers to sue for unfair dismissal on the first day of employment.
Here is another thing they need to explain...
They announced a per-mile charge on electric cars. Where will they get the mileage info from? Cars don't need MOTs in the first three years of life, so that's not going to work.
I can see more forms and an army of civil servants collecting the data (like HMRC), but I can't think how they can ensure people are telling the truth - maybe the intention is to introduce some other form of MOT-type test for electric cars 0-3 years old? Anyone any idea what they are planning? How much will it cost to collect?
So let's look at how the latest budget stacks up against Labour's promises in their manifesto...
Manifesto Page 26: Labour will stop the Chaos and support business through a stable policy environment, giving investors the certainty they need to fuel growth
Where to start on this one? - Many leaks in the run-up to the budget have frozen the economy as people decide what choices to make, and have resulted in more leaks to try and stop the backbench rebellions. The chaos of the OBR leak of market-sensitive information, the entire budget, this morning, puts the tin hat on it.
Increased tax on dividends will not encourage investment. Labour are also scrapping the NI relief on pension payments above £2k.
Above-inflation increases in minimum wage, new taxes on family farms and businesses, the budget is not about growing the economy or incentivising work, it's about increasing the benefit burden on ordinary working people and raising record levels of government debt - forecasts say a further 2% more than the level projected just this March.
Page 20 - Labour will bring down the cost of energy
Fuel duty will rise from September 2026 with the removal of the 5p cut introduced by the Conservatives. Just in case you thought that having an electric car would save you from that, they will introduce a new charge (no pun intended) on electric cars of 3p per mile.
Page 21 - Labour will not increase Income Tax or NI and will not increase taxes on working people.
Frozen thresholds until 2030-31 will hit all working people, Labour said they would protect. It will drag £1.7m people into higher tax bands, an £8.3bn stealth tax. They are increasing taxes on workers, pensioners and savers to pay for handouts and keep Labour backbenchers quiet.
Overall taxes will hit a record 38% of GDP, the OBR says, which risks constraining economic activity. Last year she put up taxes by £40bn and said she wouldn't come back for more - that didn't last long.
And finally, chaos will spread to the high end of the housing market with a tax surcharge on high-value homes worth more than £2m, modest family homes in some areas of the South East, certainly not mansions. This will generate significant uncertainty on the margins with the need to revalue and also the appeal process. It will also distort the market for homes in the £1m to £1.7m bracket.
