CHANCELLOR UNDER PRESSURE ON
There have been widespread calls to increase police funding in this week’s Budget Fuel duty is to be frozen in the Budget for the ninth year running Political editor THERESA May promised earlier this month that austerity was coming to an end.
The promise, in her speech to the Conservative Party conference, referred to the period after Brexit takes place.
But Chancellor Philip Hammond will be under pressure to demonstrate that austerity is reaching an end when he delivers his Budget statement tomorrow.
Some details of the Cabinet discussions taking place in the run-up to the Budget have already leaked.
But beware – sometimes plans are deliberately leaked in order to manage expectations or to give Cabinet ministers ammunition in their negotiations with the Treasury.
Measures that may be in the Budget: Mr Hammond will promise that Whitehall departments will get above-inflation budget increases in next year’s spending review – but only if Britain emerges with a Brexit deal, according to reports.
He may also announce NHS funding to pay for the 10-year cancer strategy announced by Theresa May at the Conservative conference.
Regional pay: Mr Hammond wants greater “flexibility” over public-sector pay and is looking to take a more “targeted” approach, according to reports. Prime Minister Theresa May delivers her leader’s speech during
This would include ensuring pay rises are based on people’s performance and where they live.
A freeze on fuel duty: Theresa May has already pledged that fuel duty will be frozen for the ninth year in a row.
Think tank the Institute for Fiscal Studies has estimated that the policy costs the Treasury about £9bn a year.
However, supporters of a freeze say it cuts bills for cash-strapped motorists, and particularly helps people in rural areas.
Tax rises: The Chancellor is said to be considering postponing income tax cuts and curbing pensions tax relief in a bid to find more funding.
Universal Credit: The Chancellor has been urged by some Conservative MPs to provide up to £2bn to sort out Universal Credit, the Tories’ flagship benefits policy.
Universal Credit is supposed to reduce poverty by helping people get into work (although it is also claimed by some people who already have a job). But in practice there’s evidence it has led to an increase in rent arrears and families dependent on food banks.
Funding for the North of Tyne Combined Authority: Parliament is midway through giving approval to the proposed new regional council for Newcastle, Northumberland and North Tyneside. If all goes smoothly, then a temporary mayor will be appointed this year, until mayoral elections take place in 2019.
Mr Hammond may announce some funding for the North East authorities involved in order to demonstrate the Government’s commitment to the new authority.
Funding for the police? Home Secretary Sajid Javid has been pushing for more funding for the police, but Mr Hammond is said to have turned the request down.
It’s reported that Mr Javid demanded several hundred million pounds for policing and counter-terrorism, following concern about rising crime rates and violent crime figures in particular.
He is also said to have called for a better pay rise for police, who have been given a 2% increase.