Wednesday, October 30th, 2024 - Budget Day

 

This is personal, stated the Chancellor of the Exchequer, Rachel Reeves. She refers to realities of the 1980s and 1990s. The Chancellor's efforts to gather capital will drag hundreds of thousands more people into paying tax and even more into higher rates as their pay rises, indicates none other than The Guardian.

Could a personal crusade turn into a nightmare? Changing fiscal rules to disguise debt making it appear as something else does not change the fact that it will still be borrowing. So more taxes and more borrowing that will be increased for public interest, according to the Chancellor.

Ordinary folk and many business were badly hit by the Covid Pandemic and the measures implemented to deal with the Covid Pandemic. After that, people and many business were hit by the energy crise generated by the conflict in Ukraine and the measures adopted against the Russian Federation. 

Now, they stand to be hit again by taxation and potentially higher prices of utilities, housing and daily shopping.

But the Chancellor of the Exchequer still says that she will implement the budget in a way that she will 'protect the living standards of working people'. 

Well, in an interview made in Washington, USA, Rachel Reeves - perhaps inadvertently - made promises that she will have to deliver. If she does not deliver and if the measures implemented by the Labour government become a de facto nightmare, then this will create a widely open door for another Conservative government.

Starting on Wednesday, October 30th, 2024, the government will have to deliver and with every failure, and every new crise, there will be many by-elections along the way in which people will express their discontent.

She talks about building schools and hospitals. Well, what will she do about nurses salaries that are not enough to rent a one bedroom flat? If living costs keep rising, this will be a de facto devaluation of salaries and a worsening of living standards. Before she goes around building schools and hospitals, she will have to look carefully at salaries actually paid to teachers and NHS staff. 

Even with the triple lock, state pensions are not enough to rent a one bedroom flat. State pensions are totally insufficient. Taxing state pensions and private pensions can only worsen an already bad situation. And this is going to do nothing to 'protect living standards'.