The announcement of the latest budget has revealed one of the most critical issues in the upcoming general election: economic credibility. The Chancellor focused on portraying himself as a responsible steward of the economy, with the National Insurance cut representing a considerable tax reduction. However, there were no earth-shattering policies to transform the Conservative Party’s electoral fortunes.
Instead, over time, the Chancellor aims to create an impression that the country’s economy is improving. For example, average earners’ financial situation will improve in comparison to the rising taxes frozen thresholds have subjected them to. The crucial argument to unfold in the coming days focuses on inflation, mortgage costs, rent, and income per head, taking into account people’s spending power and sentiments. Do voters feel more economically confident about the future, and do they perceive they have disposable income?
The economy’s status is vital for the political argument between parties such as Labour and Conservative. Labour has slowly regained credibility on economics, with opposing parties’ opinion supporting this. Meanwhile, the Conservatives’ former strength, the economy, is now a vulnerability as they have overseen years of instability. While most of it was entirely out of their control, such as the effects of the pandemic and the war in Ukraine, the current tax rates and national debt show the consequences of public spending.
Jeremy Hunt’s announcements indicate his direction of travel. Scrapping National Insurance altogether would cost a fortune, but it is a pointer towards aspiration and differentiation between Tory and Labour. However, it remains to be seen whether the Conservatives can convince disillusioned voters to switch back by the election’s day
Read the full article from The BBC here: Read More