Budget: Why George survived the tightrope walk…for now

GEORGE Osborne had a lot to prove when he rose to deliver his maiden Budget speech just after 12.30pm today.

Could the Chancellor show that he has a plan to help balance the country’s bloated books? Could he walk that fine line between punishing the people on lower incomes and caning the wealthy?

Could he satisfy the Liberal Democrat arm of the coalition Government that he would not deliver too many painful blows to those already hurting from the recession?

And could he convince the many doubters that he has the knowledge, the toughness, the bloody-minded determination to get a grip of Britain’s woeful finances?

Certainly 54 minutes later when he took his seat again on the parliamentary benches there were fewer people who doubted his abilities.

Not even 40-years-old, the Chancellor gave an assured performance, but more importantly he delivered a Budget that was as fair and balanced as it could be given the constraints that lay heavy on him.

He acknowledged the huge contribution that business and entrepreneurs make to Britain and will make to the recovery. He didn’t hit the people in lower income brackets too hard but the 2.5% rise in VAT next January will mean we all have to take some pain.

Even the Queen felt the squeeze, seeing the Royal Family’s £7m Civil List payment frozen again and in future they will see their spending scrutinised by the National Audit Office.

Away from Buck House, back at the House of Commons, the Chancellor appeared to have walked the tightrope and made it to the other side.

From him there was less of the pre-election smugness that put off the voters and more of a determined grimace to be decisive, deal with the deficit and put the country back on a sound financial footing.

It was a good start, now we will see if his efforts can deliver.

• Budget: At a glance
• Budget: Public sector loses out to the 80:20 principle
• Budget: Cheer for those on state pension
• Budget: Hopes boosted for manufacturing-led recovery
• Budget: OBR underestimates fiscal tightening – ITEM Club
• Budget: Welcomes and warnings from property sector
• Budget: Entrepreneurs ‘can earn more’ says Chancellor
• Budget: Entrepreneurs ‘can earn more’ says Chancellor
• Budget: Levy on banks to raise £2bn a year 
• Budget: Sigh of relief at caution on CGT