The budget
Not a lot to report -- growth is stronger than everyone thinks, public finances ok, golden rule to be met, pensioners to get more than £100, extra spending here, there and everywhere.In the main it was a political speech, and a brilliant one at that. He took all the Conservatives' efficiency gains, and spent them. He then outlined his budget priorities:
"It has been put to me that we freeze the defence budget and cut it in real terms.
At a time when our armed forces are now serving in Iraq, Afghanistan and Kosovo as well as in Northern Ireland and elsewhere, this course would be irresponsible, contrary to the national interest and I reject it. In the last Spending Review we allocated the largest spending increase in 20 years to defence and I can tell the House that I propose real terms increases in defence spending.
There have also been representations to freeze the Home Office Budget and to cut it in real terms. I have agreed with the Home Secretary that having increased the numbers of the police this would be exactly the wrong time and contrary to the national interest to freeze expenditure on the Home Office.
I have also received representations that we should freeze the transport budget, cutting it in real terms. I have consulted with the CBI and business organisations and they feel it is critical to the economy to press ahead with investments in our infrastructure and that we should not return to the old stop-go in spending which left hundreds of road projects planned but never completed. So the Spending Review will provide for real terms growth in transport funding not for cuts."
I think the Conservatives should tackle this head-on. Given their policies on efficiency gains, health and education spending are similar, let the election be fought on a Chancellor who wants to spend on defence, law & order and transport and Conservatives who want to slash spending on those issues and make some limited tax cuts (once they've reduced debt).
Obviously now the efficiency savings have gone we'll need to make bigger cuts, but Conservatives believe that 25% of government spending is wasted, so why not 25% cuts?
posted by Matthew @ 3/17/2004 01:46:00 PM
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