Chancellor has thankless task ahead

NEXT Wednesday will see the Chancellor of the Exchequer, Rishi Sunak, deliver his keenly awaited Budget. He is going to have to cope with a huge debt mountain, growing on a daily basis, an economy in bottom gear, and Covid still very active.

He is well aware that austerity is not an option, yet he has to try and develop policies that will generate a much greater tax take. Whatever actions he chooses, he will be heavily criticised by various pressure groups, let alone his Tory colleagues on the back benches.

It is inevitable that maximum use will be made of stealth taxes, such as maintaining tax thresholds, not upgrading with inflation. That will only generate grumbles, not outright opposition. It is also fairly certain that he will increase tax on fuel by as much as perhaps five pence per litre. He will endeavour to justify such this imposition by explaining that it will tick all the “green” boxes.

The Chancellor is very well aware that it is necessary to grow the economy quickly. The more people that are in work, the more tax will flow into the coffers. He must therefore come up with ideas to encourage investment from existing businesses and cause new entrepreneurs to launch their ideas. He also needs to encourage those who have increased their savings over the lockdowns, to spend, so increasing VAT should not be an option. The clever bit might be to encourage them to buy British-made goods.

It is inevitable that the vast majority of holidays will be taken within the British Isles this year thanks to Covid. This will mean much inflated tax returns from home tourist areas such as the West Country, Wales and

Scotland. That may be one of the reasons that some economists are forecasting that Britain could have an exploding economy as a result of pent-up demand.

The Chancellor has a thankless task, for on the downside, it is almost certain that some form of furlough will have to be continued, not to mention the much debated additional £20 of Universal Credit. Against these demands he has to motivate and encourage people to spend and businesses to invest. Not easy!

Next Wednesday will be an interesting day!

DEAR Editor, I applaud Jonathan Walker’s article in last week’s Post (February 18) headlined ‘They do things better up North’.

The article was an accurate and damning appraisal of Midland politicians, of all parties, when it comes to fighting for the best interests of our region, compared to politicians in the North.

You only have to look at the difference in perception and status between the Northern Powerhouse and the Midland Engine.

You will regularly hear the national media discussing the Northern Powerhouse but rarely the Midland Engine.

Why did Midland politicians allow this to happen without a fight?

Unfortunately, the evidence suggests there is no appetite from anyone with political influence in the West Midlands to organise ourselves in this way.

There seems to be a belief that the present low key, ad hoc, arrangements will do. I cannot believe politicians can possibly believe that this approach can be successful.

If they do they shouldn’t be in the positions they hold.

We need the mayor of the WMCA, plus the leaders of Birmingham, Wolverhampton, Sandwell, Walsall, Coventry and the shire counties to recognise the perilous state our region is in and organise themselves without delay alongside the East Midlands.

The other thing that is stacked against us is our poor representation within the national media.

Apart from a very grudging rump of a service provided by the BBC our region has no investment from any other publicly funded broadcaster or independent television.

Finally, it isn’t all down to politicians and prominent Midlanders.

The Midland man and woman, who isn’t a politician or an influential figure, needs to get involved as well.

Make sure those who represent you get the message loud and clear that we will not accept becoming a third rate region behind the South East of England or the North.

David Emson, Belbroughton,

Worcestershire