It seems that Jeremy Hunt’s budget has had an unintended consequence – while there are some who believe it will result in tax cuts, a significantly larger portion of voters believe it will actually lead to higher taxes.
According to the most recent Opinium survey for the Observer, which was conducted after the budget, the Conservative party has dropped by two points in the last two weeks, experiencing the opposite of a “budget bounce”.
The goal of Hunt and Prime Minister Rishi Sunak was for the budget, which is most likely the final one before a general election, to show that the economy is making a recovery.
Sunak’s main goal was to provide a noticeable tax reduction as a way to show that the government is successfully redistributing money to benefit individuals.
The highlight of the budget involved a reduction of two percentage points in workers’ national insurance (NI) taxes, totaling £450 annually for an employee with a standard salary of £35,000.
Nonetheless, economists and think tanks have highlighted that additional actions in the budget, such as maintaining the threshold for higher tax rates, ultimately led to a rise in overall taxes.
In contrast to fourteen days ago, the Conservatives’ support has decreased by two percentage points, landing at 25%. Similarly, Labour’s popularity has also declined by one point, reaching 41%. As a result, Labour’s lead has increased by one point to a difference of 16 points.
When asked if they believed tax levels had increased or decreased due to the budget, 31% of those surveyed said they thought it had increased, even with the national insurance reduction. Only 17% believed they had decreased. 29% believed there was no change.
Hunt’s approval rating has slightly dropped in comparison to the Opinium poll conducted two weeks ago. Only 22% of individuals approve of his job performance, while 21% did so two weeks ago. However, there has been a three-point increase in those who disapprove of Hunt’s performance, now at 45%, resulting in a net rating of 22%.
According to James Crouch, the leader of public relations and strategy at Opinium, it is unlikely that one budget alone would be able to significantly improve a double-digit deficit in poll numbers. Despite Jeremy Hunt’s efforts to create space in the budget for a noteworthy tax reduction, it appears to have made no significant impact.
“In the end, for the Conservatives to see a boost in their electoral prospects, it is crucial for voters to perceive the positive effects of the NI cut and potential economic rebound more significantly than the ongoing cost of living pressures that have been prevalent over the last couple of years.”
Source: theguardian.com
