‘Will it stand the test of time?’ is often a question asked. In short – will something that looks or sound good today be so in the future. When it comes to Budgets there are two tests that it needs to pass. The first is how do “the markets” respond? The second is does a major announcement unravel when it collides with media and public scrutiny. On the basis of those tests, the Chancellor’s Budget passed with flying colours. Moreover, the Office of Budget Responsibility (capable of reform I know but the litmus test we have for the foreseeable) did not sound any alarm. In more nuanced terms the Chancellor’s latest fiscal event continued rebuilding my Party’s reputation for sensible, prudent economic management and our determination to govern in the National interest.
The Budget harvested the benefits of the falling level of inflation and weakened upward pressures on interest rates. It was not rash. We have a strategy that takes each hurdle as it comes – building on progress and delivering benefits for all. The progress on childcare and benefit will help many families across North Dorset. The freeze on fuel duty is always welcomed by communities in rural areas where the use of a car is a necessity rather than a luxury. The harnessing of digital to drive efficiency is to be heralded across the NHS as it means that all our health data will be easily accessible across the NHS and, as a result, more people can be seen more effectively. The freezing of duty on alcohol for a further year is welcome news to our vital village and town pub sector as it is to those who enjoy a drink at their local. This pub lifeline is on top of the 75% reduction in Business Rates which were announced in the autumn. The 6-month extension to the Household Support Fund provides the transition for many families as inflation continues to fall, and as welfare payment increases come in in April. This Fund, administered by Dorset Council, has been incredibly helpful to many families in North Dorset. As Local Government Minister, Councils told me how useful it is and I made an energetic case to Government colleagues to extend the Fund while inflation-decreases hardbake themselves into shop prices.
The continuing of the Triple Lock is excellent news for North Dorset pensioners, providing as it does, dignity in old age.
I know some wanted a cut in Income Tax. However, I think the choice of further reducing employee NICS by a further 2% (from April 6th it will be a 4% reduction since last Autumn) was the right one; reinforcing as it does, a key message that chimes with North Dorset – being in work pays. The path to abolishing employee NICS is clear – to achieve it we just need to stick to the Government’s plan.
