On the 8th July 2015, Chancellor George Osborne announced his budget for the new Government after the 2015 general election which saw the Conservatives win with the majority of seats within The House of Commons. Now, even though I see some of the points of the budget effective, some I think will have a massive effect of people within the country mainly on education. And we all know how much the Tories love to cut, cut, cut.
One shocking factor which I think will have a massive effect on the future generation is the scrap of University maintenance grants being replaced with loans that students will have to pay back after they graduate and earn over £21,000. Something the Liberal Democrats stopped during the coalition government As I know from many friends that have been to university, so many rely on the maintenance grants to help them through university. University can open so many opportunities and should not just be limited to the rich and fortunate.
However one factor I feel that will benefit the next generation is the introduction of the National Living wage of £7.20 to over 25s. This will take effect from April 2016 and is set to be increased to £9.00 by the end of this government in 2020. But I feel that this may not be enough to help the less fortunate to have stable and comfortable living and financial situation.
One thing that I feel the Tories have finally put a cap on is the the amount of household benefit to £20,000 a year or £23,000 if you live in London. I feel happy that the Conservatives are finally addressing this issue which saw many people abusing the system by claiming benefits for the children and not even attempting to find a job. However I feel that this may have a massive effect on people who haven’t been abusing the system and making genuine claims. Hopefully these will make the welfare state system more affordable and make it fairer for what the tax payers pay into it.
George Osborne also announced that from September 2017, they would offer 30 hours free childcare for 3 for 4 year old’s. Correct if i’m wrong but this was a LIBERAL DEMOCRAT POLICY, Which was mentioned in the Liberal Democrats 2015 general election manifesto. But we all know how much the Tories love taking credit for the Liberal Democrats work, such as creating 2 million apprenticeships which again was a LIBERAL DEMOCRAT POLICY, and also promising £8 million for the NHS which again, you guessed it was a LIBERAL DEMOCRAT POLICY!!!!
There was also said that all public sector workers would be given a 1% pay rise which would be locked for four years, this will take effect from 2016. I feel that this pay rise is not good enough for out public sector workers. As a student nurse myself, I feel that all public sectors deserve a better pay rise for all the hard work and effort they put into keeping the public sector working. Even though MPs have been offered a 11% pay rise.
But hopefully this government will finally tackle tax avoidance as it became a massive issue during the last government. They Conservatives have promised more resources for HMRC Revenue and Customs so that they can make sure people are paying the right amount of tax against what they earn. Some of the ways the government hope to clamp of tax avoidance is, tripling the number of criminal investigations HMRC can undertake into complex, making sure international companies pay tax on profits diverted from the UK and allowing HMRC to access more data to identify businesses that aren’t declaring or paying tax. Hopefully this will take effect on the amount of people who avoid paying tax.
Some other polices that was announced in the budget was, the deficit will be reduced by 1% each year, the tax free personal allowances will be increased to £11,000 in April 2016 which I feel will benefit many people on low incomes to help them provide for their families. This Governments ambition is to increase the personal allowance to £12,500 by 2020. This will see people who are working 30 hours a week on national minimum wage pay no income tax at all. This also means that in 2017 the average tax payer will £905 better off. Which if this promise is carried out, can make a huge difference for the better for benefiting many low income families within the country.
I have to say out of all the budgets I’ve acknowledged during my involvement within British politics, this is the one that appeals to me the most. I feel that this budget, if the Conservatives manage to keep their promises can benefit many low income families within Britain. However I feel that is budget will have a massive effect on the amount of people from low income families who apply and wish to go to university may struggle to because of the cut of the university maintenance grants and replacing them with loans which will instead leaving them in more debt when they leave university. Is the start we will really want for the next generation? Leaving them with debt when they have just started their career?
I also feel that this budget will effect people with such mental health disorders as depression and bi-polar because they will be £1,500 a year worse off. The money given to them to them by government, is meant to help them get extra support to enable them to get back into work and start living a normal life again. Taking vital money away from them that is meant to help people get back into the workplace, will only hold them back.
Will this budget benefit the country? Only time will tell.