The return of the stupid party.
There is only one thing to draw from the Tories' BINGO! ad, as tweeted by
Thankfully, we don't just have to rely on the Tories' own chairman to show up the coalition, as the Institute for Fiscal Studies has once again cast their eye over the budget. As last year, they condemn George Osborne in wonderfully understated language, as he continues to find money for tax cuts and spending without it being made clear where the money's going to come from. "A Chancellor focussed on sound management of the public finances over the long tern would not make a habit of repeating these sort of manoeuvres," Paul Johnson said (PDF), but then it's been clear for some time that Osborne is no more focussed on the future beyond the next election than Gordon Brown ever was. The IFS notes there was again not even the slightest reflection on whether the scale of cuts required from non-protected departments are achievable, as they and many others doubt. Such shocks, whether they be tax rises, further cuts or both are to be left until after 2015.
Nor were the more widely praised changes to pensions spared. Despite the best efforts of the coalition and their supporters in the press to say so, it is not patronising to ask whether some will underestimate the amount they'll need to live on come retirement, nor whether the result will be a rise in the cost of annuities for those who do want them. As Paul Johnson also pointed out, the Treasury expects the amount brought in from allowing people to cash out their pension pots if they so wish to increase in the short term, then reduce over time. The real worry is not that those approaching retirement age will run out and buy Lamborghinis and then rely on the topped up state pension to live on, but as Tode says, it will spark a further round of buying to let, further limiting the opportunity of those on low incomes to purchase their own home. Having already made it almost a right for parents to pass their homes on to their children, now it seems they'll be able to bequest their property portfolio as well.
Not that everything is entirely rosy for the comfortably off. The additional 2 million who have found themselves dragged into the 40p tax band since 2010 have but one person to blame: the chancellor who has slashed corporation tax and abolished the 50p rate for the mega rich, meaning the shortfall has had to be made up somewhere. Even so, the IFS makes clear whom has suffered the most under the coalition, and it sure isn't middle earners: with the exception of the top decile, who can more than shoulder their share, the poorest have been hit hardest. It's worth remembering that this was Alistair Darling's plan for closing the deficit, almost the model of progression. The coalition by contrast has assaulted the poor and got away with it, helped along by those who've focused on Benefits Street rather than the Square Mile. Still, "they" can be bought off with beer and bingo, right?