2021 Budget
- Chancellor Rishi Sunak presented the Government’s annual Budget to the House of Commons last week.
- The Budget was highly anticipated due to the ongoing effects of the Coronavirus Pandemic on businesses, the self-employed and the general economy.
- Some main announcements included stating economy expected to return to pre-COVID levels by middle of next year; and Government borrowing highest since WW2. Getting deficit back to pre-COVID levels expected to take decades of successive Governments.
- Some main parts of Budget include furlough scheme extension until end of September; help for self-employed extended; £20 Universal Credit increase continued for six months; new recovery loan scheme for businesses; small-business Help to Grow scheme; £5bn of new grants for hard-hit firms; business rates holiday extended for retail, hospitality, leisure; reduced VAT for hospitality, tourism extended; stamp duty holiday extended;
- On tax the Budget includes personal income tax threshold freezes from 2022 until 2026; thresholds for inheritance tax, pensions lifetime allowance, and capital gains frozen; Corporation Tax to increase to 25%; super-deduction to incentivise business investment, reducing taxable income by 130% on amount invested.
- First ever UK Infrastructure Bank, initial capitalisation of £12bn, to finance public/private sector green industrial revolution projects.
- Freeports reintroduced, eight to be set up, special rules for cheaper and easier business.
- £700m to support arts, culture, sports to reopen, £150m help communities take ownership of pubs, theatres, shops, local sports clubs at risk.
- Various other announcements that you can read about here
My view
When listening to the Budget being announced one would think it sounds really great, all these extentions on things such as the furlough schemes and the Universal Credit payment increase and the announcement of new measures to support businesses and the self-employed as they come back from months of disruption and lockdowns. But many also question what has not been included and if the measures to pay for this extensive Budget is truly enough to actually pay for it, many question if Government borrowing will again significantly increase to help fund this.
But after a year of one of the worst crises in history, since at least WW2, the Budget is overall not too much of a surprise in the number of expensive measures it is choosing to take, such would be expected during a crisis, to have a normal Budget during these times would make it seem underwhelming. The Government had to deliver big and I’d say when push comes to shove this is generally what they have done. Of course though, no one will always be happy and there will always be some faults with each Budget and other things that could also have been included.
It is naturally most prominent that people will argue over the extension of schemes or the extension of the £20 Universal Credit uplift, asking if whether it is enough or if it should go on for an indefinite period of time, or even in the case of the UC uplift, making it permanent. Many Unions have also argued that extensions to support for business and employers is simply not enough. Unions have also expressed concerns over how Freeports may effect the rights and conditions of workers, and others believe that Freeports simply should not have been brought back as “they were already tried before”. I personally think we should at least give Freeports a go for now, considering problems with trade that have come about after BREXIT, but I do understand arguments and concerns against them.
There were also no significant measures for social care announced, once again this sector will feel neglected, and considering the state it was in before the pandemic, and how much more the pandemic has effected social care, one would have perhaps expected some kind of major announcement on social care in this year’s Budget. But it seems this area will remain neglected for now.
Many have also expressed dismay at the limited environmental measures announced in the Budget, and there are criticisms the new UK Infrastructure Bank doesn’t go far enough.
Another major disapointment was no major pay rise announcements for NHS workers, which does feel like an insult after what these essential workers have gone through over the past year. I certainly do not think a 1% pay rise later announced some time after the Budget is at-all enough and risks causing most prominently a nurse shortage.
I feel it was also unfortunate that we heard nothing more on a new online sales tax that was talked of earlier in the year that would have been levied against large online companies such as Amazon, I really think this should have been announced as another way to pay for this Budget and help get the economy back on track from the pandemic. But I do support the increase in Corporation Tax, although it will be a large increase it still remains competitive against many corporation taxes of other countries and so should not serve to drive away multi-national business.
Overall I do not think the Budget was bad, I think it has many good elements and I am in support of all the extensions to support businesses and individuals financial security and help them build back as we emerge out of lockdown. It is just I wish there were some other areas, as mentioned above, that would have been nice to see included. But I also understand that a Budget simply can’t give everyone what they want to see, sacrifices and exclusions have to be made. It’s just one of my big irks is that too often social care is excluded, this needs to change and I’d see this as one of my largest criticisms of the 2021 Budget.
As always the true test will be to see where we stand by the time we reach the next Budget in 2022. Was borrowing still a lot? Was the announcement on the economy returning to pre-COVID levels correct? Were the other forecasts on the economy correct? Did the measures introduced work as intended? Did the Budget measures cause any unintended effects? And so on.
Loyalist Groups end Support for Good Friday Agreement
- Northern Ireland Loyalist Paramilitary Groups have withdrawn their support for the Good Friday Agreement
- The move by the groups’ follows tensions over the Northern Ireland Protocol a part of the BREXIT Deal which puts a trade barrier down the Irish Sea
- The Good Friday Agreement was integral to ending the decades long Troubles, a period of severe sectarian and political violence in Northern Ireland between Republican and Loyalist groups
- Loyalists groups call for the Northern Ireland Protocol to be amended to ensure unfettered access of goods, services, and citizens throughout the United Kingdom.
- The groups will also not accept a hard border on the island of Ireland or between Northern Ireland and the rest of the UK, which they say has no cross-community support and is therefore unteneble.
- Loyalist groups also called for the UK Government to trigger Article 16 of the NI Protocol, intended to suspend the protocol when the arrangement leads to serious economic, societal, or environmental difficulties.
My view
It is definitely a concerning development in the continuing row over the controversial Northern Ireland Protocol a part of the BREXIT Deal. For those who remember the times of the Troubles it will certainly be scary to hear support for the Good Friday Agreement from a number of loyalist groups has ended. Luckily these loyalist groups have committed to being peaceful and democratic, but of course there is still room for things to possibly break down further, especially if this problem is not adressed by Boris Johnson and the UK Government.
Of course whatever path the UK Government takes it is going to cause some kind of clash, be it with loyalists and unionists in Northern Ireland or with the European Union, over say if the UK Government does choose to trigger Article 16 or continuing to extend grace periods or even just totally not honour that part of the agreement at all. I think it’s clear that there is going to eventually be some kind of political showdown, let’s just hope it does not lead to a return to violence in Northern Ireland.
I think it is essential that the UK Government begins negotiations with the loyalist groups as soon as possible as to not have the situation potentially spirial out of control or become worse. But beyond trying to calm tensions it is hard to see what to do without annoying one or the other side. Negotiations with the EU should also be pursued on this. I think it’s becoming clear that the Northern Ireland Protocol is going to keep bringing up problems, and it needs to be dealt with before it gets out of hand rather than just keep kicking it down the road. Now is not the time to just do nothing on this issue or sit back and hope things just work out, as that could be disastrous. This requires a well-thought out solution or compromise.
Harry and Meghan Interview
- Meghan and Harry have made several revelations on life with the Royal Family and the Firm in a high-profile interview aired on TV.
- These comments come some time after Meghan and Harry chose to step back as senior members of the Royal Family and go their own way, in a move that shocked the nation, although tensions between the couple and Royal Family had been evident proceeding it.
- One of the biggest bombshells in the interview was a revelation about concerns over the skin colour of Archie (their son) and that he’d not been given a title or security, against typical protocol.
- The person expressing the above concerns was not named as it would be “very damaging for them”.
- Meghan also talked about trouble with her mental welfare and considerations of self-harm and suicide and that senior people in the institution declined to offer any help as Meghan was not a paid employee of said institution.
- Meghan says the Queen had always been wonderful to her.
- Prince Harry also talked of having been trapped and not knowing a way out without Meghan and that other members of the Royal Family are also trapped, such as Prince Charles and Prince William.
- Prince Harry said part of stepping back involved concerns over history repeating itself (refering to his mother Diana). But also due to tabloid harassment and not getting enough support from the Firm (institution that runs the operations of the Royal Family).
My view
It certainly includes a number of concerning revelations on what apparently happened within the Royal Family and within the Firm (the institution of employees that run the operations of the Royal Family and its estates) during the time Prince Harry and Meghan were there. I do not think these revelations should simply just be brushed under the rug as it shows we have then learnt nothing from what happened with the Princess Diana.
But also that this potentially involves racism as well makes it a far more visibly bad revelation for the Royal Family in these times. So far the Royal Family themselves have took the usual stance of remaining silent on the interview and the Prime Minister Boris Johnson himself was very reluctant to say much on the issue and very clearly wanted to remain out of it.
But I think in this state and age this is a very wrong stance for a Prime Minister. I think it should be important for our leaders to challenge the Royal Family on the issues when it comes to controversies such as this and to get things cleared up and sorted out. If racism has happened it needs to be condemned, if there is lack of mental health support within the Royal Family this must also be condemned. The time of remaining ignorant should end.
Hong Kong Election Vetting
- Candidates to Hong Kong’s Legislative Council will now be vetted and elections delayed again, this time to 2022.
- It comes as Beijing declares only patriots should rule Hong Kong, unveiling plans to change Hong Kong’s electoral system.
- vice chairman of China’s National People’s Congress Standing Committee says rioting and turbulence in Hong Kong society reveals existing electoral system has clear loophole and deficiencies.
- For now the plans are only proposals but it is highly likely to be given approval.
- The changes come amidst the pro-democracy movement in Hong Kong against influence from the Chinese mainland.
My view
It is clear this is going to be used by China to assert further control over Hong Kong, making it so candidates running for a place on Hong Kong’s Legislative Council will likely need to have loyalty to the Chinese Communist Party. As under the Chinese one party state, loyalty to China must include loyalty to the one Chinese Communist Party.
What this means is those in the pro-Democracy movement will likely face huge difficulties to be vetted under any such shake up to Hong Kong’s electoral system introduced by the mainland, and that obviously this in itself will be undemocratic.
It is a further blow to Hong Kong’s now ailing pro-democracy movement. In my personal opinion it is a struggle to see how Hong Kong can win against the behemoth that is China.
Things to Think on or look into
- The Good Friday Agreement
- Who are the Loyalist Groups in Northern Ireland and what role have they played during the Troubles?
- The issues of the Northern Ireland Protocol.
- How does the Budget affect you?
- What more could the Budget have done?
- What do you think was un-needed in the Budget?
- What is the Firm or Institution of the British Monarchy?
- Should the British Monarchy be more transparent?
- Should the Prime Minister and UK Government and other institutions do more to challenge or question the Monarchy on issues?
- What is next for the Pro-Democracy Movement in Hong Kong?
- Should the UK Government do more to intervene in Hong Kong? Should they take more actions against China?
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