Wednesday, 30 June 2010

Budget Reaction


I don’t like the additional 2.5% on VAT. It’s pretty galling to think that a fifth of any purchase (with notable exceptions such as books, children’s clothes and cold food) is going straight to the government. Compared to an increase in tax, once we get an increase in VAT, its not likely to go down again. However apparently this level of VAT puts on a par with many of our European neighbours.

There are worrying cuts planned for the future, with talk of 25% cuts in key departments including the Home Office and Education. Only the health service and overseas aid are protected. These cuts threaten our schools and police service. Most of the costs in a school are the teachers. Could this mean a quarter fewer teachers. Maybe a reduction in teaching assistants? I am a governor at a local infant school which has been at the leading edge of high staffing levels, using teaching assistants to complement trained teachers. The teaching assistants are not used to replace teachers they are part of a team in each class. The loss of this valuable resource would have a significant impact on an ‘outstanding’ school.

My reaction to the budget led me to question what Liberal Democrats want from the coalition and how both the party and the country can gain from this form of governance? A detailed coalition agreement sets down what each party agreed to in order to form the coalition. The Liberal Democrats achieved government commitments for a referendum on a fairer voting system, taking those earning under £10,000 out of the tax system (the budget has at least made a start on this objective), a pupil premium to assist disadvantaged pupils and restoration of the link between pensions and earnings.

I can’t be totally happy with the budget. I have concerns about further cuts to come. I am reassured that with or without Liberal Democrat support the Conservatives were likely to have increased VAT. Being part of the coalition means the Liberal Democrats can get some policies through and can restrict or restrain some Conservative policies.

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