Debating a brighter Budget

Although the Budget about to be presented by Treasury Minister Philip Ozouf cannot be described as massively generous, it bucks the trend of recent years by offering some concessions, rather than simply taking more out of the taxpayers’ pockets. If Members agree, tax allowances will increase by 4.5 per cent and childcare relief for children under primary school age will double.

Although those proposed concessions are matched by proposed increases in duty on tobacco, alcohol and Vehicle Emissions Duty – which are very much in line with governmental health and environmental strategies – and restrictions on tax relief available on pension contributions, it has to be said that this Budget is far more upbeat than those drafted and passed in the depths of the recession. Indeed, the absence of stringent measures designed to claw more money into the exchequer lends at least some weight to the idea that the worst of the economic downturn is behind us.

Meanwhile, it is possible that the limited number of amendments to the Budget proposals indicate that there will be widespread agreement among Members that Senator Ozouf is on the right track – though it is also possible that many of their minds were recently on other matters, notably the elections.

Deputy Geoff Southern would like further tax threshold concessions, plus an extra £20 million injected into the fiscal stimulus fund, Deputy Tracey Vallois would like to set a 2013 deadline for setting long-term tax policy, and Senator Ozouf himself would like to reduce stamp duty, but, untypically, that is the full extent of amendments that Members will be asked to consider.