Here’s our summary of what was a thoroughly political Budget statement yesterday…
1. There were a few gimmicks… “Investing £1.5m in child prosthetics” sounds good but is small beer. The Chancellor has a budget of £780bn, so boasting about £1.5m is a bit like a man who earns £50k telling his girlfriend he’s bought her a ring for 1/100th of a penny.
2. George Osborne thinks Jeremy Corbyn will be in post in 2020 and he is spiking Labour’s current message early and often.
3. The Treasury’s assessment of EU membership will be timed for effect, which could be risky. It could be too late to try something else and it will rely on public trust.
4. The debt and the deficit remain, with more cuts to come. These will be found in devolved funds and, for the most part, will be delivered by local politicians, not MPs.
5. Firms selling telecoms, support services and transport infrastructure to the public sector should do well, but they will have to deliver social policies to win big contracts.
6. The Government will try to build its way out of a downturn – proving that a politician is (literally) someone who, when they see there is a light at the end of the tunnel, will order more tunnel…
If you have specific questions about the Budget, please feel free to contact us.