Politics
The Kitchen Sink Budget
Spoiler alert: There is unlikely to be much good news
Today is Budget day in the UK.
Again.
After Kwasi Kwarteng (a surefire pub quiz tie breaker if ever there was one) and Liz (lost to a lettuce) Truss destroyed their careers and much of the UK’s and the Tory’s reputation (earned or not) for being sensible with public funds, today we find out just exactly how screwed the UK economy is and what taxes are going up when and by how much.
Many on the adjacent isle will dread this more than the Glazer family seeing Cristiano Ronaldo approaching a microphone, to be honest, they’re probably right to.
With the budget having been labelled a ‘kitchen sink’ by some political commentators, there is unlikely to be much good news as businesses everywhere tighten their belts and employees struggle to get by.
As Sky’s economics editor Ed Conway has said; ‘The minute you get into a new job you collect all the bad news, announce the miserable stuff at the same time and take the grisliest, most painful decisions all at once. You throw the kitchen sink at it.’
With that in mind, we on this island (especially you Dr Allinson) also have to keep an eye on events, namely what is happening with pensions, VAT and issues such as vehicle tax.
If the Chancellor announces that the triple lock, a guarantee that UK pensions will rise by either the September rate of inflation, the average increase in wages across the UK or 2.5%, is back, then the island will be bound to follow suit.
Good news for pensioners, but an expensive decision for both govs.
If Jeremy Hunt was to raise or lower VAT, that too would impact on all of us and Dr Allinson’s piggy bank, equally if fuel duty is altered, then you’ll feel this at the pumps and in your pockets (well Apple/Android Pay).
While the UK gov has seen upheaval in recent years, there is in reality very little to distinguish one Manx administration to the next, and while the UK’s recession will impact on us, there is opporutnity room for growth on island through inward investment.
Jeremy Hunt (careful now) is due to deliver his Budget around lunchtime or early afternoon and we’ll be keeping an eye on what will be happening.
