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Budget 2014: ‘Tinkering with tax cuts is not the key to fiscal sustainability’

This was a Budget of contrasts, which cemented the position of pensioners as the only group to experience rising incomes throughout the recession

By James Zuccollo  

Read more in-depth analysis of this year’s Budget in Prospect

Today’s Budget is notable for its contrasts. It is politically important as the Chancellor prepares his party for next year’s General Election and reassures Conservative MPs calling for tax cuts. Fiscally, as the Chancellor never tired of saying, there is no money to share around. Caught between Conservative MPs calling for tax cuts and the fiscal reality of a £108bn budget deficit, the Chancellor’s rabbits were a tax cut for savers and another boon to pensioners.

An overhaul of the pension regime introduced flexibility and options for pensioners about to…

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