The Royal College of Podiatry responds to today's mini-budget statement
The College welcomes the Government’s Energy Bill Relief Scheme, but raises concerns that the other measures don’t put enough money back into members’ pockets
Today the Chancellor of the Exchequer, Kwasi Kwarteng, announced a mini-budget to Parliament and published the Government’s Growth Plan. The hope from many was that it would deal with the numerous crises the UK is facing - spiralling energy costs, inflation at 9.9%, devaluation of the pound, and NHS waiting lists and A&E waiting times soaring. All this whilst staff across all sectors are fighting for a pay settlement in the hope of warding off inflation. It is somewhat surprising that a new Government that is announcing over £100bn worth of borrowing would call this a mini-budget or a fiscal statement.
The Chancellor stated today that the direction the Government is moving to is through a ‘growth-based economy.’ Part of their direction in this area is to remove the caps on bankers’ bonuses and reduce taxes. This philosophy of trickle-down economics has never actually been endorsed by any economist, and recently received scorn from President Biden. Nor is there any evidence that it will boost the incomes of those on low to average incomes. Someone earning £1m will receive a tax cut of £40k, and those earning £300,000 will receive a tax cut of £10k. It is hard to see how tax cuts, totalling £45bn, will do anything to help those on moderate to low incomes. Such a move is likely to only increase inequality within our society.
The Chancellor also announced that the Government would be simplifying IR35 rules and repealing 2017 and 2021 legislation, which affects those of our self-employed members who are paid 'off payroll', and the practices that they work for. The College welcomes the move to a less bureaucratic system for those members affected.
On a separate note, the College welcomes the Government’s previously announced Energy Bill Relief Scheme, which will hopefully offer reassurance to its independent practitioners and households who are struggling with ever-rising fuel costs. This is a welcome first step, but we would wish to see Government intervention to ensure that people are able to stay warm, feed their families and maintain their businesses. The College is, however, baffled that the Government has not chosen to pay for this by imposing a windfall tax on the energy companies, a move that is popular across the political spectrum.
The College is concerned that a Growth Plan, that has not been scrutinised by the Office for Budget Responsibility, that hopes for growth through tax reduction, yet provides no assurance for public services, which will no doubt feel the brunt of a reduction in revenue to the Treasury, is ideologically rather than fiscally driven. Borrowing at a time of high interest rates will impose a greater burden on public services, some of which could have been offset by a windfall tax on oil and gas companies, as the EU have chosen to do. For health and social care services, this increased debt is likely to lead to increasing waits, delayed treatments, less equipment, poorer services, and ultimately an increase in health inequalities. Whilst the Chancellor’s statement speaks to businesses, high earners and the City, there is a likelihood that NHS services, already under severe strain, will continue to struggle. We call on the Department of Health and Social Care to invest further in preventative services to ensure the sustainability of the NHS for the twenty-first century.