The new budget for the conservative party was announced yesterday by Chancellor George Osborne, which included details of tax decreases for those earning less than £11,000 per year, saving on average £900 per family, as well as rewarding savers with a £1,000 tax free in a savings account and also tax reductions for pensioners. This will lead to in excess of seventeen million people having their tax completely abolished. The budget is used also to promote the new “help to buy” system by allowing more tax reductions for those using the scheme.
The head of the politics department gave his view. He argued that much of the new budget has been used as a method of demonstrating the effectiveness of the current government, and as a way of stressing the goals which they have achieved. The conservative party clearly stressed the saving they made for the average family on fuel, to quote Chancellor Osborne “Save ten pounds a tank with the Tories.” This was an alliterative slogan which helped to emphasize the savings made.
However these changes in the budget do not reflect well for many of those on middle incomes, who earn enough to be over the tax cut thresh hold, but also not a substantial amount. One such group of people affected in this way are the teachers in the state sector, approaching the fifth year of pay freezes. These pay freezes have made life difficult with expanding prices of everyday items, and the conservative budget is looking to continue this extensive freeze in order to fund its tax reductions for others. Others who might be feeling the negative effect of this budget are those reliant on the welfare state, as this to will be facing further cuts in order to support the changes which some may argue, are unnecessary and indulge undecided voters in order to retain power.
Another point raised by opposition was the effect this has upon the highest earner of the population, who in fact benefit from these changes due to a £500 tax free allowance. It is a feature of the new budget which some feel is unfair to the middle earners and those on income support due to the extensive cuts they will endure if a conservative government comes to power. In addition to helping higher earners these tax changes will also benefit many middle class families with the savings tax reductions.
Despite criticisms the conservative party stressed that this budget would be most beneficial to the lowest earners and the impact on the deficit. They emphasized the progress made during their term and how this new budget will strengthen the progress already made.
The Head of Politics also was keen to demonstrate the effect this would have on education. He reaffirmed the affects this would have on the state sector and the ever less attractive proposition of teaching within it. However he states it is possible to argue that this would be a beneficial change to the independent schools, as the budget would allow for more people to afford these schools. This can be viewed in both a negative and positive light, by potentially, in addition to effectively decreasing pay; this will lure many teachers in the state sector away, leaving it desperately under staffed. However the potential influx of children into independent schools could also relieve the pressure on staff and resources, and therefore cause the funding to stretch further and allow for smaller classes, which could greatly benefit the system.