The Shadow Welsh Secretary, Owen Smith, has attacked the Chancellor both for his overall economic strategy and for the specific consequences for Wales of today's Budget.
The Chancellor could have introduced a package of measures to stimulate our economy: cuts to VAT and National Insurance, for example, and increased spending on house building and other infrastructural projects that would increase economic activity and boost tax receipts. And today’s Budget, in which the Chancellor said he was going to ‘level with’ Britain, acknowledges as much by adopting a version of Labour’s plan on National Insurance and by increasing the spending on infrastructure too.
But look at the fine print and what do you see: none of these things come in this year and most, like the elusive extra £3 billion on infrastructure, only due to appear in 2015 – when the Tories may well be out on their ear. And the same Osborne hallmarks of ‘jam tomorrow’ and sleight of hand are apparent in the treatment of the budget for of National Assembly.
David Jones announced that Wales would get an extra £161 million to spend on infrastructure – but we all remember that this is just putting back some of the £500 million cut in capital spending that was made in 2010 budget and even in the terms of this Budget it’s not quite as simple as the Welsh Secretary would have us believe, because a further £59m is cut out of the Welsh Government’s revenue funding, forcing hard decisions about cuts to services on which we all rely.
Welsh families, businesses and politicians have been counting the cost of today's Budget, as they look to balance their own books.
From Credit crunch to VAT, here is a quick glossary of some of the key terms you will hear in this year's Budget.