Footy Takes Pressure Off Chancellor

30 November 1999

Well, it is budget time again and I love to be right. I did say that everything in the last budget was pointless as it would all change when the election was held and it appears to be the case. Only problem is that it may have changed, but it doesn't look any better. In fact, it is fair to say things are going to be much worse.

I fear that I was very wrong trying to earn extra money, as now we look likely to lose our child benefit. We come just above the cut off limit and while we might have some extra income, we also have some increased expenses. So the money which Claire uses for the kids clothes, for attending kids clubs and all those nice little extras which keep her sane simply won't be there. Either that or I will have to work even harder to supplement it. Or I may have to “massage” the figures to see if I can come in under the threshold. A chat with my accountant looks like it is on the cards. Add to that the fact I am also likely to pay a higher band tax, then life looks rosy – not!

Then there is the VAT increase. An extra 2.5% might not seem like much when you are just spending a hundred quid on the weekly shop, but if you are a business and spending many thousands in one go, this could be enough to send you over the edge. The concern is that people will simply say to themselves that they won't buy that conservatory they wanted or get a builder in to do those other home improvements. Of worse still they might just employ that bloke from down the road who doesn't charge VAT because he gets paid cash in hand.

The papers are also saying that public sector workers might decide to strike to protest against their pay freezes. Now this really gets my goat. People working in the private sector haven't had pay rises in a few years now and those who are unemployed are mostly earning much less than they used to. Why should the public sector get away with inflationary rises in their pay? It might be a bitter pill to swallow, but if something applies to one area of the economy it has to apply to all.

The problem with strikes is that the people affected are the average home-owner. We are left with our bins bursting, our buses not running or our roads unswept. How does that affect the government or even the councils? The misery is heaped upon us average people. I certainly support the right to strike, but it has to be for a fair reason.

On a positive note, there is the tax free allowance increase. Although this is nothing like the increase to £10,000 which was promised by the Lib Dems. Some people will have an extra £170 a year, but it will be swallowed up by the VAT increase, so not really that great after all...

The timing of the budget couldn't be better though could it? The pressure has been taken off the chancellor, due to the number of people who are more concerned with how England are going in the World Cup. As I pointed out last week I am not a football fan, but I can see that our pretty poor performance has made life easier for those who have written the budget. People just haven't quite twigged yet how much worse off they will be.

As I write this, the crucial match is yet to be played. So as you read this you could be either excited about our win or drowning your sorrows due to our loss. Either way, I wonder what is actually more important – the budget or the footy?