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Budget 2010: And the punchline is…?

From an administration that we thought could push the boundaries of perception versus reality no further, Wednesday’s Budget speech by Chancellor Alistair Darling elevated empty rhetoric to an art form. A string of laughable measures closely followed by, erm…nothing. Nice delivery but no details and no punchline, leaving us feeling like dinner party guests cringing at a host’s poor attempt at humour.

It was clearly too much to expect a Budget that placed the interests of the nation and its reputation on the international stage above party politics and electioneering. As its original architects hoped, the era of New Labour will indeed go down in history, but unfortunately for all the wrong reasons.

Right at the beginning of his Budget speech, the Chancellor announced that, “the challenge now is how we invest as a country to support the industries of the future and allow the talent of the British people to flourish”. This was closely followed by: “This will be a Budget to secure the recovery, tackle borrowing and invest in our industrial future.”

Hollow words. The fact is that UK businesses and contractors have flourished for a decade despite everything government has thrown at us, and not because of anything it has done for us. We hear about measures to support business, yet when we apply, we discover that funding has mysteriously dried up or that, for baffling and inconsistent reasons, we’re disqualified from applying.

It is true that flexible working has been supported by a wealth of legislation. Time off for this, time off for that, training, rights to flexible hours and more. But strangely, these noble laws only apply to employees. In other words, those people who, incidentally and conveniently, pay a significant percentage of their earnings direct to the taxman.

And yet even stranger is that the really highly skilled and flexible workforce of knowledge workers – us contractors, freelancers, consultants and interims – have been consistently legislated against. IR35 was the first major blow, followed by a steady stream of damaging anti-contractor measures.

What does this government have against the non-employed? Could it be that most knowledge workers refuse to be unionised? Perhaps the thought of 1.4 million flexible contractors and freelancers it can’t control terrifies one of the most control-oriented administrations the UK has ever seen?

The government had its opportunity but has failed to explain exactly how it plans to get us out of the economic mess we are in. Once again we have been fed spin and no substance.

Sadly, the main opposition Conservatives are also proving big on rhetoric and ‘light’ on the details. By not being clear about the dramatic action needed to help our economy recover, the Tories are not doing themselves, or us, any favours. In fact, speaking on Radio 4’s Today programme the day after the Budget, because he would only talk in general terms, Shadow Chancellor George Osborne was unable effectively to counter charges that his policies were remarkably similar to those of Alistair Darling.

The joke’s on us and it’s just not funny anymore.

Published: Friday, 26 March 2010

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