Spring Budget 2024: Hunt cuts National Insurance but Budget a ‘last desperate act’ – Snap May election ruled out & questions if it enough to see off Labour?

Editorial Thursday 7 March 2024.

Thursday’s newspapers continue their coverage of the Budget – picking apart the measures announced by Chancellor Jeremy Hunt yesterday. The biggest focus is on the announcement of a 2p cut to National Insurance. The right-leaning papers tax cuts are always welcomed, even if it benefits the highest earners most. They see it as the best way to attract business to Britain. The left-leaning papers see the Budget as ‘stagnant’ and the public won’t be fooled. The papers say the cut will be paid for by rises elsewhere and public service cuts after the election. 

Elsewhere, a couple of the front pages highlight the upcoming US elections which will see a Trump-Biden rematch, and a few tabloids lead on royal gossip.

‘A solid Tory Budget’ 

The Daily Mail assesses the Tory budget as solid but lacking in excitement. It suggests that while the measures would be deemed sound if the Tories were leading by 20 points in the polls, they are currently in need of a boost to regain momentum.

The Sun’s editorial questions whether a 2p reduction is sufficient given the circumstances. It acknowledges the solidity and thoughtfulness of Hunt’s budget but highlights the absence of game-changing initiatives, particularly as the Tories struggle in the polls.

The Daily Telegraph focuses on the Chancellor’s ambition to abolish National Insurance for workers, though it warns of the challenges and costs involved. It suggests this could feature in the Conservatives’ election manifesto but cautions against the removal of the contributory principle from welfare payments. Its editorial warns that scrapping National Insurance would be “fraught with difficulty” because it would “remove even a semblance of the contributory principle from social and welfare payments”.

The Daily Express, under the headline “Britain ready for takeoff!”, applauds Hunt’s efforts to stimulate the economy by increasing disposable income. It suggests the budget reflects the nation’s recovery from the economic crisis and the government’s ability to return earnings to the populace.

The Times praises the tax cuts as a bold move to incentivise work over additional benefits for pensioners, traditionally aligned with Conservative voters. The paper notes the chancellor’s claim that Britain’s economy was “turning a corner.” The paper does acknowledge that “more than half the giveaways in the Budget were funded by increasing taxes in other areas”.

‘Budget full of gimmicks’ 

The Daily Mirror expresses disappointment, branding the budget as “loaded with gimmicks” and saying “we deserve better.” In its editorial, the paper accuses Chancellor Hunt of attempting to sway voters with bribes, dismissing it as a “Tory con trick” that won’t fool anyone, citing tax cuts being overshadowed by rises elsewhere and post-election spending cuts.

Labour leader Sir Keir Starmer’s condemnation of Hunt’s statement as the “final desperate act of a failing party” dominates the Guardian’s front page. Despite the giveaways, the paper reports that taxes are poised to reach their highest level since 1948.

According to the i, Labour has indicated it won’t impose taxes on high earners to fill a £20bn gap in Britain’s public spending if it comes into power. The paper notes Sir Keir and shadow chancellor Rachel Reeves are “determined to resist any left-wing pressure” for taxes on wealth, such as a mansion tax. The paper quotes one Labour MP saying: “We’re going to have to find some policies that strike out a different pathway forward… on the economy, or we will end up being the midwives of austerity 2.0”.

‘Budget draws election lines’ 

For a couple of the front pages, they asses how the Spring Budget will play out for voters – with a general election expected in November. 

The Metro says Hunt’s Bidget has “drawn up battle lines for the election”. The paper says that the 2p cut will lower contributions for 27 million workers and will allow someone earning £35,000 to keep an extra £450 a year.

The Telegraph wonders if Hunt will abolish National Insurance altogether – making the policy the “centrepiece of the Conservative re-election bid”. 

The FT suggests the chancellor has left the “door open to more tax cuts,” and with the Tories currently trailing Labour by 20 points in the polls, he is under pressure to do so. 

The Mail’s front page simply asks: “Will it be enough to see off Labour?” as it bemoans the lack of game-changing measures. 

The Guardian’s take on the lack of surprises in the Budget suggested that a snap election in May is likely off the table. Many experts are still predicting a November election.