
Apart from stiffing recent graduates and dragging more people into higher tax bands, Martin Lewis was quite pleased with John Healey's budget statement. Which fits the label Aditya Chakrabortty applied to it: this was a budget to please everybody's favourite money expert. But what about the politics?
This was far from the big offer Andy Burnham sold during his Labour leadership conference speech. Of the 10-year plan, there was nary a sign. Instead, this was a tinkerer's budget but one designed to land with a minimum of fuss. For example, £100 for everyone in council tax bands A to D to offset the projected hundred quid rise in the energy price cap will be appreciated. The scrapping of the standing charge and absorbing it into gas bills is redistributive in intent, and ticks the fairness box with those consuming the most expecting to pay more. Though pensioners dependent on heating and larger families might not be as sanguine. Likewise, taking tariffs off selected food products will save a few coins here and there. One not likely to make much of a difference to household budgets, but a decent indicator that the government understands cost of living pressures and are being seen to take action.
If, however, one's budget earns an item of praise from Kemi Badenoch then something has gone wrong. In her reply to Healey, she welcomed his abandonment of efforts to equalise the minimum wage. In Tory land, fairness means you're less entitled to the same standard of living if you're under the age of 21. For the Conservative leader, this is something business has been lobbying for and will boost hiring rates and tackle the so-called NEET crisis. Will it though? What drives hiring are markets, the conditions determining whether hiring new employees offers a profitable return. Age wage differentials offer marginal help to small and medium-sized businesses. It's big business that would pocket most of the savings, and so won't do much if anything to lower the rates of younger people signing on. The more serious political problem for the chancellor is the freezing of the threshold for student loan repayments. Over 21s working full time on the minimum wage will now be liable for repayments, a true giveth with one hand and taketh with another measure almost designed to keep the Greens' lead among younger layers a semi-permanent feature of British politics.
The wider politics of this was about keeping British business mollified, and given the endorsements Healey reeled off at the beginning of his speech that mission has been accomplished. The big promises made are light years from the Bolshevist dread that seizes the imaginaries of hyper-class conscious sections of capital whenever the meekest mild social democratic policies are raised. And so this settled jitters, drew sharp distinctions with the recklessness of the Liz Truss budget, made the doom-mongering of the right wing press look ridiculous, and keeps the government on the public's right side.
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