The starting gun for the next general election campaign may have already been fired, but today’s Autumn Statement represents an intensification of hostilities. The Chancellor took some of the fiscal headroom handed to him by the Office for Budget Responsibility and sought to give voters — not least Tory backbenchers — something back.
Jeremy Hunt vowed to reward workers as he goes for growth. The main emphasis was on business taxes, where a competitive environment is so critical to securing growth and boosting productivity. Yet the Chancellor’s promise threatens to collide with economic reality, given that the Bank of England is forecasting GDP to flatline next year.
Should the fiscal backdrop improve, there will no doubt be further tax cuts in the Budget next spring, perhaps with a greater focus on personal taxation, given the Prime Minister’s long-standing promise to cut income tax.
But voters beware. Fiscal drag, the process of freezing tax thresholds, has already drawn many more people into paying higher rates. Even the most generous of chancellors give with one hand and take away with the other.
Advantage SW19?
Wimbledon isn’t any tennis tournament. The Championships is the oldest and most prestigious in the world, where history and tradition remain undefeated.
But that does not mean the event can afford to stand still. The All England Club has ambitious expansion plans which would include a 8,000-capacity show court, practice courts and a public park on land previously occupied by a golf course.
The proposals have been met with fierce resistance from some locals and last night Wandsworth councillors voted to reject the application. Merton council, which covers the majority of the site, approved it last month. The application has now been referred to the Mayor of London’s office for its decision.
A local council taking local considerations into account is understandable. This does not mean that the substantial city and nationwide benefits of the project ought to be drowned out.
A case for change
One of the many joys of taking the train is avoiding the indignities of modern air travel. Not so fast, says London North Eastern Railway. The operator has warned travellers they may only take a single large suitcase and two smaller bags aboard services between the capital and Edinburgh.
Trains will never compete with planes when it comes to speed over ultra-long distances. But they can win over and keep passengers by treating them better. Clearly, there is a trade-off between people and baggage at the margins. But if we want to encourage more people onto trains, operators must make it easier, not harder.
