What was your response to the Budget? We asked readers on social media what the most important decisions were for them.
For Peter Curnow-Ford it was the stamp duty cut: Read more
George Osborne fights to retain confidence in his stewardship of the economy with a crunch mid-term Budget.
By Ben Fenton, Lina Saigol and Tom Burgis on the newsdesk in London with contributions from FT correspondents in Westminster and beyond. All times are GMT.
George Osborne will use his Budget on Wednesday to announce a further squeeze on public sector spending and pay to shore up government finances and provide some money for his pet projects.
Changes to the state pension announced at the weekend will bring the exchequer a stealth windfall of almost £6bn a year from 2016-17, mostly paid by public sector employers and employees in the form of increased national insurance contributions.
By banking much of the money generated, the chancellor will be able to challenge Labour to match his tough attitude to public sector workers or face a further black hole in the public finances.
Officials have indicated Mr Osborne will bank £3.3bn, more than half the windfall, with the remaining £2.2bn used to fund projects such as the Dilnot proposals on social care and other Treasury initiatives.
Mr Osborne’s windfall will come from the small print of the plan to introduce a single-tier pension at a minimum of £144 a week in 2016-17.
The chancellor said on Sunday the new pension would be a “huge boost” for pensioners but did not add that associated changes would see steep rises in national insurance bills Read more
The chancellor has drawn up plans to find fresh savings from the public sector payroll by ending the historic system of “pay progression” enjoyed by millions of workers.
Teachers, NHS workers, police and civil servants in six departments currently enjoy regular pay rises along a sliding scale for their pay grade, so long as they meet career appraisals.
That explains why public sector pay has continued to rise despite a headline “freeze” to salaries since 2010.
But the Treasury has just set out new plans for departments to propose an end to “automatic time-served progression” as a way to save costs in the 2015-16 spending review, scheduled for June. Those changes would apply to the six departments which still Read more
David Cameron and Nick Clegg were this morning falling over themselves to claim the credit for helping “hard working families” with news of a new voucher scheme that could be worth up to £1,200 per child.
After weeks of wrangling, the coalition was finally ready to press the button on a tax-free childcare scheme to replace the current “employer supported childcare” system. The new scheme will eventually reach up to 2.5m families – compared with the 450,000 who access the current voucher system – and include the self-employed. Read more
David Cameron is currently leading a debate in the Commons over the deal struck late last night to regulate the press with a Royal Charter. That debate has so far been characterised by a great deal of backslapping by all three party leaders, to the extent that Nick Clegg joked:
If all three parties behave like this after the general election, they’ll have problems fitting us all into Downing Street.
He had a slightly tougher time however when trying to explain the measures to the parliamentary Tory party, which met before the debate started. Read more
Since Thursday, the manoeuvrings over press regulation have taken increasingly more surreal turns.
First we had the prime minister abruptly calling off the talks, citing irreconcilable differences with Labour and the Lib Dems. Clegg and Miliband were only given a couple of hours’ notice about the announcement, journalists were given 30 minutes.
After that, it looked like the prime minister was heading for inevitable defeat in a vote today on the Lib-Lab proposals for a Royal Charter backed by statute. His aides seemed to recognise such, saying that the prime minister would promise to repeal such a law if there was a Tory majority in 2015. Read more
Some fascinating economic research by Ipsos Mori, published today, shows that George Osborne is the least popular chancellor in nearly a decade, with net approval ratings of -33. Nobody has had such bad ratings since Ken Clarke in the early 1990s.
At first sign this is unsurprising: this is the first recession we’ve had since the early 1990s (if you take 2008-now as one recession). But actually when you plot the popularity of chancellor’s against economic growth, the two are surprisingly unconnected.
Plotting chancellors’ approval ratings since 1976 tells us a few things: Read more
Sometimes when a leader of the opposition has a lot of different attacks to make on a prime minister at PMQs, they try to spread themselves too thinly and end up not hitting home with any of their pre-prepared lines.
Not so today. Ed Miliband was faced with a choice selection of easy pickings with which to attack the prime minister, and blended them together perfectly to leave David Cameron looking red-faced and ineffectual.
The Labour leader began with an uncharacteristically well-delivered joke about the apparent u-turn on minimum alcohol pricing: Read more
This morning we reported in the FT that bishops in the House of Lords are leading an attempt to exempt children from the below-inflation rise in benefits. This follows on from the comments of Justin Welby, the Archbishop of Canterbury, over the weekend, who said:
By protecting children from the effects of this bill, they can help fulfil their commitment to end child poverty.
But just as interesting as the bishops’ response to government attempts to slash the welfare bill has been the reaction of Tory MPs to the archbishop’s comments. Read more