Fear is the watchword for this most important of Budgets. For those who own shares, or second homes, or cannot conceivably be defined as “working people” (whoever they are), the fear is of tax rises. From capital gains to pension relief and inheritance tax, the Chancellor is looking to raise in the region of £40 billion to plug a gap in the Government’s finances and fund departmental spending. The broadest shoulders must bear the heaviest burden, but the anxiety in the suburbs is palpable, while the tax accountants have been doing a roaring trade.
The other group filled with more than mild concern is Labour MPs. Despite the significant tax rises to come, few expect Tony Blair-level increases in spending. Instead, much of the money will go to filling gaps left by the previous Conservative Government. Consequently, whether it be the National Health Service, the prisons or education, backbenchers fear that come the next general election, voters will be paying more without enjoying measurably better public services.
