Not for the first time a budget from Mr Osborne started unravelling within days and this time provoked the resignation of a Minister. This latest ‘omni-shambles’ of a budget represents a continuation of the transfer of wealth from the least well off to the better off. Any second thoughts on cuts to the disabled will, at best, be delays only just as the Tax Credits cuts will eventually be realised through the roll out of Universal Benefit.

The changes to the tax thresholds give tax reductions and extra income to the top 4 income deciles and do nothing for many of the legions of part time workers. Most in work benefits are already ‘frozen’ for the next 4 years so low paid workers will gain little if anything up to 2020. Income tax changes together with proposed reductions in corporation tax make it clear that the disabled and the poor are seeing reductions in their incomes not to pay down the deficit, supposedly the chancellor’s priority, but to ‘reward’ the better off and big business. Meanwhile the chancellor is set to miss all the targets that he has set himself.

The ‘sweeteners’ and clever ideas on ISA’s are mainly ‘window dressing’ and the promises on infrastructure investment are less than they seem. The removal of business rates from small business will be welcomed by many but will cause further financial problems for already cash strapped local councils. Councils had been promised full control of business rates as a (partial) replacement for the loss of their government grants during this parliament.

CLP So what would I have done if I was chancellor? I would resist big changes to tax thresholds and I would reintroduce the 50% top rate. Unlike the chancellor I would have gone ahead with restricting tax relief on pension contributions for the better off. Most of the relief currently goes to higher rate tax payers and putting money into pensions is a way of reducing income tax liabilities. I would abolish the ceiling above which national insurance falls to 2% so all individuals, whatever their income, pay the same % NI on all their income above the lower limit. Without access to civil servants and advisors I am not certain how much these changes would raise but I would use it on the NHS and infrastructure investment on building ‘council houses’. These could be delivered much quicker than major roads and railway projects, will employ lots of people, provide much needed affordable homes and begin to put a brake on rampant speculation and price rises in both owned and private rental sectors with consequent reductions in the housing benefit bill. This is not all official Labour policy, yet at least, as there is a full review of economic policy taking place but I would argue for them to be considered.

Yours sincerely Anna Coda, Chair, Hereford and S Herefordshire Peterchurch