There always seems to be a lot going on in politics these days, and the last few months have proved to be no exception. The impending Autumn Budget seemed to take up significant column inches, which was perhaps surprising given that everyone already knew the outcome. Well, we knew the impact even if we didn’t know the details. In a slightly masochistic way, I quite enjoyed the game of speculation that was played out daily in the media beforehand. The government would be asked whether there was going to be a new tax on jelly babies (it genuinely didn’t matter what the subject was). To which the response would be that ‘we can’t rule it out’, and so the next day the papers were full of interviews with confectioners and newsagents bemoaning the impact that jelly baby taxation would have on their fortunes.
As if this unhelpful speculation wasn’t enough, we also got to witness the government’s almost daily kite-flying, where they announced the possibility of tax rises in order to gauge opinion from all quarters. As a result, most people were left with the impression that nobody really had a clue what they were doing. Belatedly, the government seemed to wake up to the fact that not ruling anything out and then endlessly flying kites wasn’t really doing anyone any great favours, least of all themselves or the economy.
And if, like many, you found yourself watching, listening or reading about the Autumn Budget with a weary acceptance and a slight feeling of déjà vu, then you weren’t alone. Most people were already resigned to what was coming their way, even if they didn’t know precisely which of their pockets was about to be picked. The subsequent shenanigans surrounding the existence or otherwise of fiscal black holes doesn’t alter the trajectory. And if you somehow contrived to miss the budget altogether, then let me give you an executive summary: unless you’ve recently moved to Dubai, you’ll be paying more tax and keeping less money.
In fact, it never matters whether the Chancellor presents the numbers with a smile or a grimace, or whether the giveaways are dressed up as something generous. When you strip away the fluff, the direction of travel is pretty clear. We’ll all be paying more into the system, and we’ll all be left with slightly less in our own pockets. And, rather depressingly, this isn’t something that’s going to change any time soon. Even if the political winds shift and the front benches change colour, the underlying economic reality remains the same. The country is wrestling with a mountain of debt, enormous demands on public services, and a tax base that’s already heavily strained. No government of any persuasion has the luxury of suddenly opening the taps and making us collectively wealthier. The fundamentals remain unchanged. And because of that, the pattern will continue. More tax. Less money. And this will be the backdrop to our financial lives for years, perhaps even decades.
