‘Era of austerity finally coming to an end’

1/ The end of austerity? If there was one message the Chancellor wanted voters to remember, this was it. “The era of austerity is finally coming to an end,” he declared at the start of his speech (and repeated throughout). A £2.7 billion cash injection into the Universal Credit welfare system was one of several spending increases which he hoped would prove his point. Not everyone was convinced, and Labour leader Jeremy Corbyn angrily rejected the claim.

2/ Mental health. The Chancellor announced an extra £2 billion for mental health services, including money for specialised ambulances, support for schools and young people, and a 24-hour mental health hotline. It is a big increase on the £12 billion currently spent on mental health in England, but some experts fear it still will not be enough.

3/ Some money for schools (but more for roads). Schools will receive £400 million to help them buy “the little extras they need”. Meanwhile, local councils will get an extra £420 million to help fix potholes. The headteachers’ union claimed the move would “infuriate school leaders” and that “for schools and young people, austerity is most certainly not over.”

4/ Tax. “I didn’t come into politics to put taxes up,” the Chancellor said. And for many, tax bills will decrease slightly as of yesterday’s Budget. By increasing the personal allowance to £12,500, the average taxpayer will save £130 a year. A new digital services tax was also announced — specifically designed to target big internet companies like Amazon, Google and Facebook, all long-accused of contributing too little.

5/ The environment. Much has been made of the scourge of plastic pollution sweeping the globe. In response, extra taxes will be imposed on the production and import of plastic packaging that contains less than 30% recycled material. However, other environmental measures are small: £10 million to tackle dumped waste and £60 million for tree planting (by comparison, the Ministry of Defence received an extra £1 billion).

Should we share the Chancellor’s optimism?

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Absolutely, some respond. The Chancellor is right — through sacrifice and hard work, the worst consequences of the Great Recession have been overcome. The government has the country’s finances under control, and these tax cuts mean many people will be better off. Cautious optimism is good.

Nonsense, others respond. There is every chance that Brexit will impoverish Britain — deal or no deal. The legacy of austerity is still felt by families suffering through poverty, or those forced to sleep on the street. And once again, the government has failed to take any meaningful steps to fight climate change. Things are not looking good.