The Institute for Fiscal Studies has carried out a review this morning of the budget. Outgoing director Paul Johnson noted that Miliband has come out on top from yesterday: “It’s DESNZ which is the biggest winner in terms of extra cash.” Everyone is focusing on the NHS while Reeves’ Budget allocates £14.1 billion to DEZNZ next year, a 22% increase in current funding levels…
Johnson made clear that no one should confuse shoving cash into green projects with growth:
“That should help us deliver our climate ambitions, but that’s a different thing from increasing the supply-side capacity of the economy. It’s valuable to produce stuff more cleanly but it’s not the same as investing for growth.”
As Guido revealed during Labour Conference the government is considering spending billions of taxpayer cash on an energy “social tariff” to subsidise rising bills in the net zero transition, which it clandestinely accepts is going to hike energy costs. Meanwhile Reeves yesterday announced a new windfall tax hike on North Sea oil and gas producers to 38% from 35% and an extension of the levy by one year. Fuelling more reliance on foreign imports…
Paula Barker, Liverpool Wavertree MP backing Andy Burnham, told Times Radio there wouldn’t be trouble from the markets under Burnham:
“The markets will have to fall in line.”