Did a spoonful of sugar tax help the fiscal medicine go down? DMU politics lecturer Alistair Jones analyses George Osborne's Budget
As George Osborne stood up to present his budget to Parliament, the surprising thing was how little had been trailed in advance. Why? This was no budget. This was the opening salvo in George's bid to become Conservative Party leader when Dave steps down.
Alistair Jones, of DMU's Department of Politics and Public Policy
The content spoke to the Tory Party. We have a strong economy that will continue to grow at least 2% per year until the end of the decade. This is despite the global outlook being so weak. A strong Britain which can stand on its own two feet. Here, there was a small caveat, as so many of the forecasts were dependent upon continued EU membership. This was George's commitment to support Dave (unlike Boris or former best friend Michael Gove). While such a commitment may not go down too well with the party rank-and-file, it shows a willingness to toe the party line – which the party rank-and-file also respects.
Added to this, the national debt is coming down and the deficit will disappear by 2020 – assuming all the forecasts are accurate. Of course, by then George wants to be the party leader. If the targets are not met, it won't be his fault.
George's commitment to business was there. Corporation tax will be reduced to 17% by 2020. For all those who worry that so many multi-national corporations do not pay their fair share, don't worry. George is going to chase them up.
For small businesses, the news was even better. A significant cut in the business rates relief. Around six thousand small businesses will no longer pay business rates from April 2017. There was a huge cheer from the Tory benches to this announcement. Just as loud was the collective groan from every city hall, where the cut to business rates means less income for every council. How will they be able to deliver all of their services with an even smaller pot of money? That's no concern for George. He focuses on the big picture, as every putative prime minister should do.
More nuanced was the introduction of the sugar tax, or the levy on soft drinks. This will not happen until 2018, to give the industry time to adjust – or to find alternative ways of sweetening their products. The levy will be spent on children's sport. This fell nicely in line with the extension of the school day. No longer will school finish at 3.30pm. There will be sport afterwards. I'm not quite sure what the already-overburdened school teachers think of this pledge.
And this was George's leadership bid – sorry, budget.
Posted on Thursday 17 March 2016