A cynical Budget
[Re: Osborne’s gambled on the wrong policy, yesterday]
I have serious misgivings about describing the chancellor’s schemes for home ownership as “help”. It’s an encouragement for builders and to existing home owners, who will see the house price bubble inflated in some areas. But for those looking to buy their first home or upsize, they’ll be taking on even more debt on an overpriced asset. An awful, cynical, politically-targeted policy.
As someone earning, through my own blood, sweat and tears, somewhat more than the median income, this Budget was annoying. My taxes increase, I get to fund purchases of houses but cannot participate, and the list goes on. The Tories are shafting the middle classes while running with the line that Labour will be worse – which is true. Should I move abroad? I’m getting tired of this.
George Osborne’s economic policy since 2010 has been to manage the trajectory set by Gordon Brown. Nothing will change as long as he’s in Number 11.
Osborne is storing up massive problems for the future. He’s buying (at huge potential cost) short-term votes in a typical, cynical way. The future is someone else’s problem.
BEST OF TWITTER
The Help to Buy mortgage guarantee is just the taxpayer guaranteeing the sort of sub-prime debt that caused the credit crunch.
If you increase housing demand, without an increase in supply, prices will go up. Concentrate on house building.
Any deal on Cyprus must exclude deposits below €100k as collateral damage for the euro in wacking insured deposits is serious.
As horrible as the deposit idea levy was, I can’t help thinking that Cyprus and the EU are headed down a more dangerous path.