Comment: A very cautious, compromised attempt at a populist Budget

“In this Budget there are certainly plenty of measures that most households would welcome, albeit in a mild, ‘better-than-nothing’ mindset. The £100 energy rebate will certainly be welcomed by households that qualify, along with the removal of standing charges and tariffs on grocery items. The increase in the minimum and living wage should help those struggling the most with the cost of living. And if there is one thing that could be said to potentially be a life-changing measure, it would be the commitment to offer, for the remainder of this Government, a bed to every person living on the street.

“In terms of how these savings will be raised, there will be relatively few complaints that levies against banks and gambling companies will be increased. But the levies announced today fall short of the rates expected, which could lead critics to suggest the Government haven’t gone far enough.

“But the overall feeling is that this Budget comprises a large number of very minor measures that add up to a very negligible difference for workers and taxpayers. Furthermore, the latest update from the Office for Budget Responsibility makes for grim reading. Growth in 2027 is readjusted downwards, with inflation projected to go up to an average of 3.5 per cent for the year – all of this may well mean that today’s measures will get easily swallowed up by increased living costs. A tough two years is forecast ahead, which may lead to more widespread dissatisfaction and resentment.

“Where do the Government go from here? Next year will see the long-awaited Spending Review, when details of their plan for defence spending, amongst everything else, will become clearer. Also, if the Government are still enjoying a lead in the opinion polls, then it might be time for them to step into campaigning mode with a view to being re-elected in 2028. Whether this will mean more generous measures in next year’s Budget, we will have to wait and see.”