By Rab Bruce’s Spider

Everyone knows that old saying about stopping digging when you are in a hole. Everyone except George Osborne, it seems.

On the face of it, his budget yesterday was cautious, unambitious and perhaps even a little populist. It must be said that it contained a handful of measures which few people would grumble about. For example, raising the Personal Allowance is a help to all taxpayers and the cuts to North Sea Oil taxes are both welcome and overdue, even if Gideon couldn’t resist announcing that the SNP are bad when he falsely claimed that such tax cuts could only be granted by the broad shoulders of the UK, completely ignoring the very obvious fact that any sensible Government would have built up an oil fund during the good years so that such measures could be taken without placing any additional stress on the economy during times of low oil prices.

But it is the Sugar Tax that has caused the biggest stir. To be honest, I don’t have too much of a problem with this. Like other measures such as the 5p charge for carrier bags, the smoking ban and the reduction in the Drink / Drive limit, the tax is intended – at least notionally – to alter society’s behaviour by reducing the consumption of readily available soft drinks which contribute to problems of obesity and dental decay which plague society, particularly among the less well off. If it helps address some of the problem then it is a good idea and, quite frankly, it is worth trying but it must be acknowledged that there is a risk that, like Tobacco Duty on cigarettes, it may not reduce consumption and might become simply another way of raising taxes. All in all, though, I think this tax needs to be tried.

Gideon’s master stroke has been to focus attention on this "Sugar Tax" and thus deflect scrutiny from his other measures. It is in these other aspects of the Budget that we see Osborne’s lack of imagination and adherence to Tory ideology.

First of all, he has continued his attacks on the Disabled. Those people who are on reasonable incomes who might be celebrating the rise in the 40p tax threshold might want to consider that the money they will save is effectively being taken from the pockets of Disabled people who can barely afford the cut to their Benefits. This is pure Tory ideology, as is the proposed cut to Corporation Tax which will mean that companies will be paying a lower tax rate than the consumers who pay VAT on the goods and services the Companies provide.

As with so many Tory measures, the burden of taxation is being switched to the general public, with the better off benefitting most and the Disabled being unfairly targeted once again.

But, although these measures are deplorable from a societal point of view, they are not the worst aspect of the Budget. Put simply, Osborne has stuck to his Austerity agenda when the majority of economists have long been saying that contracting the economy by cutting Government spending is only going to exacerbate the problems of slwoing growth and declining tax revenues. This is Osborne’s greatest failing and, while he will insist that any problems are due to international factors, the truth is that the UK economy is struggling mostly as a result of his own stubborn refusal to abandon a failing policy. It’s a short-sighted view which will only lead to further economic problems as tax revenue continues to fall. That will make Osborne’s Deficit reduction programme more difficult to achieve which will result in him cutting spending even further, which will continue the downward spiral as tax revenue slumps even further. This is a time when the economy should be stimulated, not held in check.

Quite simply, Osborne is in a hole and he is still digging.