I’VE been in politics long enough to know that few announcements in the Commons escape close analysis the following day.
Wednesday’s Autumn Statement is no exception.
While there was much to welcome, the dreaded ‘fiscal drag’ caused by the freeze on income tax thresholds has pulled too many middle income earners into the top rate.
Rightly, the Chancellor concentrated his fire at the business sector to encourage growth, and with it jobs and prosperity, although not reducing Corporation Tax was a serious omission.
Let’s not forget that it’s the private sector that generates the revenue for our public services.
And, while they are important, we can’t just continue pouring money into them without radical reform.
Defence, however, is an exception.
In the face of some very real threats, the new Defence Secretary is rightly calling for the budget to rise from two per cent of GDP to three.
I was concerned to hear the Chancellor sticking with the former, which is the NATO minimum standard.
However, some good news for constituents.
In South Dorset, where rents are among the highest in the country, the increase in local housing allowance to cover the lower 30 per cent of rents is particularly welcome.
And with our local economy so reliant on tourism, the reduction in small business rates and the extension of retail hospitality relief will help.
NI cuts, further cost of living payments, a higher living wage, Universal Credit increases and generous pension uplifts will put more money in people’s pockets.
Crucially, that’s a Conservative article of faith.
But we must go much further in next year’s Budget.
It’s sobering that analysts are saying that even after this Statement, taxes will remain at their highest for 70 years.
Real growth needs more than this.