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Philip Hammond's budget speech was light on changes – and jokes Philip Hammond's budget speech was light on changes – and jokes
(about 1 hour later)
Philip Hammond delivered a shorter budget than his predecessors, light on big policy changes and fairly sparing with the jokes. These are some of the omissions in his 56-minute speech: The chancellor, Philip Hammond, delivered a shorter budget than his predecessors, light on big policy changes and fairly sparing with the jokes. These are some of the omissions in his 56-minute speech:
• Brexit was the elephant in the room that barely got a mention. There were no gloomy warnings about the need to prepare for a bumpy departure from the EU – just two vague references to the budget paving the way for a brighter future as the UK begins its negotiations with Brussels. Nor was there any mention of provisions for the possibility of a multibillion-pound Brexit “divorce bill” that some in the EU will want the UK to pay as it leaves the bloc. In contrast, the headlines around the autumn statement last year were about Hammond’s admission that the Brexit vote would force the government to borrow £122bn.• Brexit was the elephant in the room that barely got a mention. There were no gloomy warnings about the need to prepare for a bumpy departure from the EU – just two vague references to the budget paving the way for a brighter future as the UK begins its negotiations with Brussels. Nor was there any mention of provisions for the possibility of a multibillion-pound Brexit “divorce bill” that some in the EU will want the UK to pay as it leaves the bloc. In contrast, the headlines around the autumn statement last year were about Hammond’s admission that the Brexit vote would force the government to borrow £122bn.
• George Osborne liked to announce benefit changes at his fiscal events to signal that the Tories were tough on welfare. There were no significant changes to benefits announced by Hammond – and the lack of mention means the freeze on working-age welfare continues. Most likely, Downing Street does not have the bandwidth for further tussles on welfare cuts at the moment, after Osborne was badly burned by rebellions over tax credit and disability benefit cuts.• George Osborne liked to announce benefit changes at his fiscal events to signal that the Tories were tough on welfare. There were no significant changes to benefits announced by Hammond – and the lack of mention means the freeze on working-age welfare continues. Most likely, Downing Street does not have the bandwidth for further tussles on welfare cuts at the moment, after Osborne was badly burned by rebellions over tax credit and disability benefit cuts.
• Housing was also a favourite topic for Osborne budgets, with the former chancellor announcing various schemes aimed at helping first-time buyers, such as Help to Buy. Hammond made just one reference to housing in relation to young people, saying many were thinking: “Will they be able to get on the housing ladder?” The answer, he said, was helping them to improve their skills and education.• Housing was also a favourite topic for Osborne budgets, with the former chancellor announcing various schemes aimed at helping first-time buyers, such as Help to Buy. Hammond made just one reference to housing in relation to young people, saying many were thinking: “Will they be able to get on the housing ladder?” The answer, he said, was helping them to improve their skills and education.
• Help for “just about managing” families was thin on the ground, despite Theresa May claiming she would give special attention to supporting struggling strivers. Hammond merely rolled off a list of previously announced measures, from the rise in the minimum wage to tax-free childcare and an increase in the personal allowance. Meanwhile, Labour and some Conservative backbenchers alike attacked the rise in national insurance for the self-employed. • Help for “just about managing” families was thin on the ground, despite Theresa May claiming she would give special attention to them. Hammond merely rolled off a list of previously announced measures, from the rise in the minimum wage to tax-free childcare and an increase in the personal allowance. Meanwhile, Labour and some Conservative backbenchers alike attacked the rise in national insurance for the self-employed.
• Public services got a nod several times when Hammond justified tax rises on the basis that he wanted them to be adequately funded. But there were no big handouts at all, with Labour and other critics saying the extra £2bn of cash for social care over several years was little more than a sticking plaster. The NHS got just small amounts for capital spending and funding for GP surgeries in A&E departments.• Public services got a nod several times when Hammond justified tax rises on the basis that he wanted them to be adequately funded. But there were no big handouts at all, with Labour and other critics saying the extra £2bn of cash for social care over several years was little more than a sticking plaster. The NHS got just small amounts for capital spending and funding for GP surgeries in A&E departments.
• Tory MPs love to cheer a line about freezing fuel duty, which Osborne used several years in a row to rally his troops. Hammond is continuing with the freeze for the 7th year in a row, but neglected to mention it in the House of Commons.• Tory MPs love to cheer a line about freezing fuel duty, which Osborne used several years in a row to rally his troops. Hammond is continuing with the freeze for the 7th year in a row, but neglected to mention it in the House of Commons.
• Theatricality and the element of surprise were both lacking from Hammond’s performance. He has built a reputation for himself as an unshowy chancellor, contrasting with Osborne and Gordon Brown, both of whom used the events as a platform for making big announcements on cuts and giveaways. Osborne became known for having a rabbit in his hat to distract MPs and the media from the small-print in the short term. But Hammond had nothing up his sleeve to take attention away from the backlash over his increase in national insurance for self-employed workers. • Theatricality and the element of surprise were both lacking from Hammond’s performance. He has built a reputation for himself as an unshowy chancellor, in contrast with Osborne and Gordon Brown, both of whom used the events as a platform for making big announcements on cuts and giveaways. Osborne became known for having a rabbit in his hat to distract MPs and the media from the small-print in the short term. But Hammond had nothing up his sleeve to take attention away from the backlash over his increase in national insurance for self-employed workers.
• There were a few passable gags in Hammond’s speech, including one directed at Theresa May already having announced two of his measures for women, and predictable digs at the Labour leader, who he said was “so far down a black hole that even Stephen Hawking has disowned him”. But there were no minor policy announcements designed around jokes, such as the church repair fund enabling Osborne to joke about fixing the roof while the sun is shining, or the review of deeds of variation to avoid inheritance tax, designed to make a dig at Ed Miliband’s family tax arrangements. • There were a few passable gags in Hammond’s speech, including one directed at May already having announced two of his measures for women, and predictable digs at the Labour leader, who he said was “so far down a black hole that even Stephen Hawking has disowned him”. But there were no minor policy announcements designed around jokes, such as the church repair fund that enabled Osborne to joke about fixing the roof while the sun is shining, or the review of deeds of variation to avoid inheritance tax, designed to make a dig at Ed Miliband’s family tax arrangements.