Letter: The Budget: NHS and the less well-off pay for past economic mistakes (CORRECTED)
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.CORRECTION (PUBLISHED 6 DECEMBER 1993) INCORPORATED INTO THIS ARTICLE
Sir: Everybody expected a political Budget from Kenneth Clarke - and he did not disappoint us. He was bullish about Britain's economic prospects, but be did not remind us that, because of the Government's economic mismanagement, Britain entered recession long before other countries, suffering 10 quarters of falling output - a setback from which we are only just recovering.
He also failed to acknowledge that our 'home-grown' recession, combined with pre-election spending sprees and tax bribes, is the main reason for the pounds 50bn public sector borrowing requirement, which the Chancellor has promised to eliminate by the end of the decade.
In his Budget speech, Mr Clarke also did not tell the nation that, combined with the Lamont tax increases in the pipeline from last year, the total tax burden is going to rise by at least pounds 16bn, the biggest tax increase since the war. The Institute of Fiscal Studies estimates that, on average, households will have to find an unprecedented extra pounds 9 a week or pounds 460 a year more. The Government's Red Book reveals that the share of tax and contributions as a percentage of GDP is estimated to rise from 34 per cent to 38 per cent by 1997- 98. So much for the Chancellor's 'long-term tax-cutting agenda'.
There are also going to be substantial cuts in public spending for many years to come. Our infrastructure will continue to deteriorate and the numbers of homeless will increase. Tragically, the unemployed, the sick and the poor will pay disproportionately for the Government's mistakes. As John Smith said in his reply to the Chancellor, to cut the qualifying time for unemployment benefit from one year to six months when unemployment remains so high ought to be unacceptable in a civilised country.
When all the media hype has died away, the test of Kenneth Clarke's Budget will be how far it will strengthen output, increase investment, create jobs - and make life better for all our constituents. If it achieves those objectives then it really will be, as Mr Clarke claims, a 'no-nonsense Budget'. I remain sceptical.
Yours sincerely,
GILES RADICE
MP for Durham North (Lab)
House of Commons
London, SW1
1 December
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments