Budget 2020 – Andrew Moorby’s post-Budget comments
The Budget will be remembered for two main things.
Firstly, for the very strong stance taken to protect people and businesses through the period where they expect the Coronavirus to have the greatest impact. The measures for business should certainly help to lessen the overall financial impact, but only time will tell if they go far enough.
The second point is the change from austerity Budgets, to one built around massive government spending and stimulation, with little comment about how it is to be paid for. The Conservative Party made many Manifesto pledges and the Chancellor was keen to demonstrate his commitment to see these through.
In addition, after the election, Boris Johnston made various speeches promising to repay the trust that the electorate, particularly in traditionally Labour supporting areas, had put in him and his party. Again, the Budget speech alluded to Government desire to see these pledges fulfilled, although there was a lack of specific detail sitting behind the headlines.
Whilst parts of the announcement seemed a little contradictory, it’s not easy to reconcile the green measure with those to build more roads. In broad terms, the measures were clearly targeting growth stimulation and the generation of increased wealth.
The stimulus comes at a time of poor market conditions and the fear of COVID-19 looming over us, impacting both the demand and supply sides of the economy. Therefore, it isn’t certain that the spending will have the desired impact, but it does feel like a brave attempt to push the economy forward.