The Budget

In the last meeting of our CPF Group before the election we decided to tell our respective MPs what we should like to see in the budget.  Not that we expected our submission to have any influence at this stage but we felt better about getting our viewpoint in print before the big day.  This is what we said:

"A budget genuinely looking to "Secure Britain's Future" would address such major economic challenges as low productivity, trade imbalances and insufficient investment, both public and private.  Sadly, we concluded that such imperatives would cut little ice with the majority of the electorate and that our best chance of securing Britain's long term future rested with, first, getting a Conservative Government elected and second hoping that, longer term, that Government would have the courage to do the right thing.  In essence, therefore, we believe the budget must lure voters with some jam today and even more (if you vote for us) tomorrow.  Our 5 priories for headlines in the popular press on Thursday 19 March are:

·        Increase the tax free allowance band to £12,000 paid for by a turnover tax on multi-national companies who are otherwise able to shelter their tax liability.

• Increase the 40% tax band threshold to a (meaningful) £50,000.  Timid and marginal improvements would not have the desired impact of ensuring we are serious about rewarding work and effort.  Probably a net gain to the Treasury.

• Continue to control the leviathan welfare expenditure - further tightening of the benefit cap, including a clamp-down on "hardship" top-ups, and measures to foil benefit and healthcare tourism.  In particular, announce a move to link benefits to contributions (thus circumventing an EU veto on other measures, previously floated). Net reduction for the Treasury

•  A statement on defence spending which reassures voters that we are properly funding the capabilities necessary to match out foreign policy goals and be prepared for unexpected world events.  Additional cost to the Treasury offset by a substantial dividend of increased trust in the Prime Minister (actually, probably, less distrust).

• A statement that recognises rising public expectation for public services; schools, hospitals, housing, transport etc, but does not cripple the public finances in provision.  In other words, giving hope that a future Conservative Government would break the cycle of rising public provision without earning enough to pay for it.  Neutral to the Treasury but a political minefield for opposition."