John Mcfall

Thursday

John Mcfall

The Government have got their priorities right

Alistair Darling’s first Budget was a Budget for uncertain times. Given the current global turbulence, the Government have taken no chances. This is not the time for a showstopping Budget. But the Government have nevertheless reconfirmed their priorities in this Budget, and have shown they are determined to achieve their social goals. This Budget will help the elderly, with raises in Pension Credits and winter fuel allowances; it will help those struggling with rising energy prices; and it will bring an additional 250,000 children out of poverty, reaffirming its commitment to end child poverty by 2020. Climate change was also high on the agenda—though the Government have delayed a rise in fuel duty to help those facing high costs.

Tuesday

John Mcfall

Budget 2008: Combating child poverty & helping the environment

Devising this year’s Budget can’t have been easy for the Government. On the one hand, a slowdown seems likely over the next year or so. Two intertwined factors — tightening credit and slowing or falling house prices — will constrain consumer spending and tax receipts. The Government is already nearing the limits of its fiscal rules. Of course, any slowdown in the UK will not be on the scale of, say, the expected US slowdown (many analysts believe that growth is likely to pick back up in 2009). But the Government will nevertheless need to keep a very firm hand on the public finances.