The Budget. Issues could derail plans but experts downbeat about new help.
Experts downbeat was not what we hoped for at the national Citizens Advice Budget webinar on 15 October*.
Sadly though, neither guest speaker held out much hope of extra help for the least well-off. Both were respected independent economists.
Limited resilience
Responding to the charity’s latest client data* CA national CEO Clare Moriarty spoke of ‘limited resilience’ in many households. There had been a ‘steady squeeze on incomes’ after the cost-of-living crisis and now was the government’s moment to:
- tie local housing allowance to private sector market rents at a realistic level
- target energy bill support to take account of real energy needs
- confirm long-term disability benefit in line with lived experience.
In her budget the chancellor should recognise that not dealing with current issues could easily undermine long-term plans.
Sobering
James Smith, Research Director at Resolution Foundation, a think-tank, said the charity’s client data was ‘sobering to hear’. The national economy was growing but the tax and spend position getting worse.
Day-to-day spending was under pressure; tax increases were looking inevitable; there was a case for supporting living standards but this would make fiscal constraints more difficult.
Financial Times Economics Commentator Chris Giles pointed to the government’s plans to set the public finances on a sustainable 5-year course. There would likely be increases in some public service budgets but ‘not much more on welfare’.
(At CAEE we know the importance of local public services to many people we help. But it’s also clear that only direct targeted support can raise the living standards of those in the most difficult circumstances.)
Depressing but….
Whichever way they looked our experts could see little chance of immediate results from the charity’ ‘s Budget calls. The chancellor’s options – raising benefits and support, borrowing and taxation – were all difficult.
And yet…Chris Giles and James Smith left us with two more positive thoughts:
- More support. Better targeting was essential and could be achieved. In recent times so much support had either been universal or badly targeted.
- Rich country. Optimism is possible! As a rich advanced country the UK can deal with short-term crises but not long-term rising debts. (Which kind of takes us back to Clare Moriarty – see above!)
The next Citizens Advice Data Insights is Gender Inequality, 6 December 12-1pm. Find out more and sign up here. Guest speakers: Jess Phillips MP, Minister for Safeguarding and Violence against women and girls, Jane van Zyl, CEO, Working Families.
* Watch back here including latest data slides.