AN EMPTY RITUAL
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• The Budget has become a ritual, a bit like the opening of Parliament and the changing of the guard, both of which are little more than symbolic.
So it was with this year's budget. There was a lot of bluster and build-up, with more vested-interest submissions and more media hype than ever. In the end there was a lot of pageantry, a bit of human interest, and a set of changes which gave a bit here, took a bit there, and left the economy largely unaltered structurally. Despite the individual changes — some sweeping, some not — there must be few individuals or companies much better or worse off than before. That makes it, for all its floss and gloss, not a particularly good budget.
Certainly the price of dery has gone up by a bit more than the rate of inflation; the cost of taxing a tipper has risen in in line with the Government's perception of its extra track costs; and special types vehicles will be more highly taxed. In removing an anomoly there, Nigel Lawson has created a new class of unjustifiably-overtaxed victims. To balance that, income tax has dropped; higher-rate income tax has been slashed; corporation tax (for those clever enough or lucky enough to be making profits) has fallen — and most classes of commercial vehicle have had no increase in their VED rates.
Nonetheless, the overall level of Government interference in, and taxation of, industries such as road haulage and its major customers remains much as before — higher than justified, and higher than is borne by Continental competitors. The Chancellor could have moved to bring British vehicle operatioin into line with Continental practice, with lower fuel prices and lower taxes. He could have considered exchange rates, whose movements so artificially affect haulage operations.
Had he done so, then this might have been a BUDGET. As it is, we've had another pageant, seen another show. Some of the spectactors have been charged less for the spectacle than others, but back in the real world, precious little has changed. What another wasted opportunity.