No laughing matter…

I can’t help but notice a physical similarity between John Healey and the late Leonard Rossiter, famous for his roles as Rigsby, the miserly landlord of a crumbling old building in Rising Damp, and Reggie Perrin, the fantasist middle manager bored with his life in the sitcom of the same name.

When it came to his first budget would either of these characters be replicated? Would he be miserly enough to convince the bond markets of his fiscal prudence, or would it be the budget of a fantasist? Well on first viewing it appears a bit of both.

Given we are nearing November 5th, this budget was most definitely the equivalent of a damp squib. It was always unlikely we would see a spectacular display but I did think we may see a Roman Candle or two. Truth be told it was as if the middle manager Reggie Perrin in him asked ChatGPT to come up with a budget that made no real change other than a couple of middling headlines.

To promote the continuance of the VAT freeze on Electric bills which will save people roughly 80p a week is a prime example. Conveniently he did not mention much about the additional 4% income tax that will be levied on savings and property income from April 2027! Another blow to private landlords.

The reversal of the plans to reduce the amount that can be saved into a Cash ISA a year after the previous budget is common sense, and simply down to a realisation that to do so would be too difficult to enforce and cause far too much administration for the ISA providers. Add this to the list of U-turns of the previous administration.

I think it is fair to say that the Rigsby in him managed to keep the bond markets happy, with no extravagant spending plans, but equally, neither was there any sign of spending being reined in. It was a ‘meh’ budget which I think makes the probability of an early election being called far greater.

There is no doubt Andy Burnham is hamstrung by the commitment in the previous administration’s manifesto that there would be no rise in Income Tax or VAT in this parliament and quite honestly there is not much more tax that can be raised on the wealthy, or those ‘with the broadest shoulders’ as politicians like to put it. Certainly not enough that will make a material difference to the Exchequer.

They may feel the time is right to go to the nation with a new manifesto that does not have these restrictions. Of course if this were to happen and Labour returned to power it is likely we would see a budget soon after the election which would no doubt have far more meaningful tax changes.

So fingers crossed for the nation that in the long run Healey is more of a Reggie Perrin who for those with long memories will recall had a fall and rise, and any gloom we have to go through in the short term leads to a brighter future.

Steve Forbes