It's judgement day, and as the dust settles we get a proper chance to take in the facts and figures rolled out in yesterdays emergency budget. Was it as tough as predicted? The short answer is yes, however the cautious consensus seems to be that it was harsh, but reasonably fair. The fly in the ointment on the fairness front was the VAT hike to 20% due in January 2011. As expected, there was a huge hit on public services, in pension reform and budget reductions of 25% in all departments except overseas aid and the NHS. The mooted capital gains tax rise to 40% was watered down to 28%, not out of compassion, but because that was the optimum return rate for the treasury before people choose to sit on their hands and their assets. There was a robust and targeted benefits shake-up as anticipated.
The £155bn deficit dragon will be with us for a long time to come, but George has made a decent first stab at it.
It may be a while before he's hailed as a Saint though...
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