Really Useful Knowledge on Rachel Reeves Budget. A small amount done, a huge amount still to do (but it annoyed Jeremy Clarkson)
Really Useful Knowledge was a term used by nineteenth century radicals to look at the reality of how the world worked focused around the labour theory of value, as opposed to how bourgeois politicians and economists argued it worked. Below are some notes on Wednesday’s Budget
The backdrop to the 30th October Budget was the keeping of the 2 Child Benefit Cap and the cut to the Winter Fuel Payment. Neither are progressive policies but they didn’t feature much on Wednesday
Political commentator Steve Richards argued that it was a centre left Budget. That seems optimistic. In fact it was something that aside from the Tory media that will oppose anything labelled Labour on some grounds or another, was not in some areas hugely different to what the Tories would have done.
That said the increase in the minimum wage, more spending on the NHS (depending on how much ends up in the pockets of privateers) and a focus on capital gains and inheritance taxes does suggest a mildly progressive set of measures.
The medium term background outlined in the background papers remains of a low Growth, low Productivity economy.
Michael Roberts analysis suggests in part
But there is no wealth tax on the very rich (which could easily raise £25bn a year); there is no increase in taxation of rapidly rising corporate profits (that stays at 25%) and tax exempt thresholds are not being raised with inflation until 2028, so most working people will pay more tax out of any increase in wages. There will be a “crackdown” on welfare benefit fraud to get £4bn year, but only a vague commitment to tackle widespread tax avoidance and evasion (which loses the government some £25bn a year).
The minimum wage will increase to £12.21. Reeves described the 6.7 per cent increase as a “significant step” towards creating a “genuine living wage for working people” – although it falls short of the £12.60 an hour sum recommended by the Living Wage Foundation.
Roberts quotes Sahil Jai Dutta put it: “Labour has shown little sign of changing the current model where critical infrastructure is provided by private firms. Many of these companies have shunned investment for the past three decades, while ramping up dividends, buybacks and executive pay. Rather than confront why, Labour’s priority seems to be sweetening investors and developers with more money available on better terms.”
More subsidies for big business funded by more taxes and government borrowing.
UK budget: no game changer – Michael Roberts Blog
The Budget did however annoy Jeremy Clarkson which if you see the occasion as a culture war class war is a win
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