Budget Report

March 2008

On the 12th March, Chancellor Alistair Darling delivered his first Budget. The presentation was so low key as to be somnambulant.

Political parties, unions and businesses were quick to voice their opinions on Mr Darling’s first Budget.

Darling’s opposite number, George Osborne has labelled it the “Bad news Budget” and went on to say that it “kicks Britain's families when they are down.”

For David Cameron, this budget was “a dire list of reviews and re-announcements.” Hidden within Mr Darling's first Budget was high debt, high interest rates, high taxes and lower growth. David Cameron told MPs, the “cost of living is going up and Labour is making it worse”.

Whilst Cameron was swift to criticise My Darling and his debut budget, he was also keen to point out that the previous Chancellor, current Prime Minister Gordon Brown, was really to blame for the high cost of living in this country under Labour.

As usual, the government has relied on a few headline grabbing measures to pass their budget off as a good deal for the country. However, read the small print and Darling’s empty promises are exposed. For example, Darling's winter fuel allowance is only in place for one year, costing £575m. It is offset by a permanent cut in the State Second Pension (S2P), which will raise £450m a year.

Similarly, Darling extended the low duty on zero carbon homes to flats and maisonettes, but there are only six zero carbon homes currently in the UK.

The latest small print reading shows the Darling Budget will cost the average family an extra £110 a year at a time when Council Tax rises will hit Surrey as the reduced Government grant strikes home.

We are all in for a hard tight few years!