This is exactly the right budget for the economy at this moment – a judicious mix of effective support for jobs and businesses allied with further detail on how the budget deficit is going to be tackled over the medium term. Doing it this way will help secure the recovery. Cameron’s almost hysterical response demanding instant and deep spending cuts shows he just hasn’t any judgement on these things
James Plaskitt, member, treasury select committee
David Cameron claimed in his reply that tax rises already built in for future years would risk recovery but if he believes this he must show not only what spending he would cut to meet the Treasury projections, but what extra spending.
We should welcome the continued focus on jobs in Alistair Darling’s speech. That is a key difference compared to the past two recessions under Conservative governments which believed unemployment was a price worth paying. It was a price paid for years by families and communities all over our country.
Stephen Beer
As we pull out of recession it’s important that we safeguard the prospects of the young people who stand to lose the most if the recovery doesn’t continue. This budget looks like it will do more to protect young people buying their first home, starting a degree, or entering the workplace. The last thing young people need now is for that support to be put at risk by immediate cuts.
David Chaplin, chair, Young Fabians
The guarantee that everyone can access a bank account will be important for improving financial inclusion. It shows a renewed willingness by government to ensure private providers fulfill social objectives. The freeze in the inheritance allowance will make a nice contrast with the Conservatives’ pledge to cut inheritance tax for wealthy estates. However, while the increase in stamp duty on properties over a £1 million is welcome there is a contradiction on housing policy within the budget. The further extension of Support for Mortgage Interest, to help struggling homeowners who have lost their jobs, recognises the problems that can be caused by ownership in an over-inflated market. Yet the new stamp duty ‘holiday’ for homes up to £250,000 will prime the market further and so risks perpetuating problems of affordability and inclusion. No doubt it will make good politics before the election. But we still need much greater priority for investment in social housing.
James Gregory, research fellow, Fabian Society