Smoke and Mirrors

Budget Day is a British Institution. Even people who rarely take an interest in politics know that once a year the Chancellor of the Exchequer sets out the Governments plans for taxing and spending. Invariably tax goes up on beer, wine, petrol and cigarettes and this year is no exception. I always advocate that the political effect of a budget can not be accurately assessed on the day of the budget itself. The details and the small print have to be studied. Today, the headline news is that the basic rate of income tax has been changed from 22% to 20%. What has not received so much headline publicity is the fact that the current 10% lower rate is to be abolished the result being that for millions of lower paid workers they will be paying more income tax. What Labour give with one hand they take back with the other.
The reality is that for thousands of people in Bury North who have this week seen their increased Council tax bills drop through the letter box this budget will make it even more difficult to make ends meet.

Published by David Nuttall

Business and Political Consultant

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