The Budget and Chancellor with an eye on 2020
“It is folly for a man to pray to the Gods for that which he has the power to obtain by himself.” Epicurus
In my first piece, I focus on what I believe will be the Conservative Party’s and George Osborne’s trump card for the 2020 General Election, tax cuts.
On 8 July, George Osborne (Chancellor of the Exchequer and front runner to be Conservative Party leader in 2020) delivered the first all Conservative Budget since 1996 which set out what many believe to be his political as well as economic agenda for the United Kingdom over the next half decade.
Five years is a long time in politics, but George Osborne, by vigorously attacking the deficit and aiming for a £10 billion surplus in 2019–20 will be able to offer and deliver the holy grail of election winning promises, substantive tax cuts for low, middle and high income earners alike.
This will be viewed as just reward to the public for sticking with and trusting the Conservative Party through what will have been a decade of belt-tightening which restrained the Chancellor from introducing radical (yet required) tax reform and tax cuts.
As well as being at the core of the conservative ethos, the promise of letting people keep more of their own hard earned money is a winning election strategy and will be at the forefront of voters minds as they decide where to place their X in May 2020.
Labour, the main opposition, who are naturally more inclined to resist tax cuts (especially for high earners) will not be able to use the defence they've used over the past five years, that in tough times, the priority should not be tax cuts, weakening their electoral chances.
Labour’s economic policy will become clearer once a new leader and shadow team are in place in a few months, but they are in danger of spending the next five years like they spent the last; in the wilderness, playing catch up to challenge the Conservative Party’s dominant position of credibility with the public on the economy and nation’s finances.
The United Kingdom is a heavily taxed (both direct and indirect) society and George Osborne through this budget is taking the necessary political and economic steps to secure his premiership and deliver a low tax economy for us all.