Fantasy Budget

March 23, 2010 at 9:47 pm Leave a comment

By Matthew Horne

Its budget day tomorrow. With high levels of public debt and an eye watering budget deficit – how will the chancellor respond. Here are some ideas that will probably not make it into Alistair Darling’s Budget but have made it into my Fantasy Budget 2010:

Firstly on tax:

1. Lift the cap on national insurance contributions for high earners and use the income to cut employer contributions for everyone – encouraging jobs
2. Abolish tax relief on pension contributions for top rate tax payers – ending a perk for the rich
3. Introduce a tax on financial transactions – the banks must take responsibility for this mess
4. Replace all property taxes with a land value tax – based on the rental value of the land not the buidlings- bringing unused land on the market over night and reducing house price inflation
5. Replace inheritance tax with a negative inheritance tax – a lump sum payable to everyone at age 21 followed by a tax on every estate after death

Secondly on spending:

1. Do NOT ring fence any budget from cuts including education and the NHS

2 Abolish any welfare benefit rules that require people not to work, or prove that they cannot work

3. Increase child benefit for young children, but withdraw it for families with teenagers

4. Enable local councils, the local NHS and Policy Authorities to keep any money saved from reductions in crime and the prison population

5. Enable all staff and local residents to buy shares in their local public services, participate in their governance and have say in how to invest any surpluses.

And if you want a populist measure:

Publish tax returns online for elected politicians and Peers, Directors of private companies, and directors and senior staff in PLCs, and all public sector staff paying top rate of tax.

I guess it will never happen. What would be in your Fantasy Budget?

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Entry filed under: Public Services.

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