Budget 2013: Osborne does it best when he does nothing at all

“The last thing we need is more tinkering”.

Asked what he wanted from next week’s budget, one successful entrepreneur I spoke to this week replied “not much".

A couple of others in the same discussion agreed. None had a list of proposals at the ready. It wasn’t that they don’t care what Mr Osborne says (although all agreed their focus was more on their businesses), it’s more that they want him to do very little. It fits with the general theme I hear from business that the government’s role should be to create a positive growth environment and then get out of the way.

And with the national finances in a pickle, the entrepreneurs were unanimous that the boldest thing Mr Osborne could do was nothing.

“The last thing we need is more tinkering,” said one. Her point is one ICAEW made in its submission to George Osborne, in which it suggested that instability in tax policymaking undermines future confidence. Whatever the good intentions, the culture of constant change in the tax system ends up leading to complexity.

After last year’s omnishambles, Osborne might himself wish he could get away with doing nothing. But with forecasters pointing to a triple-dip recession, sitting on his hands isn’t a political option for Osborne any more than it’s an economic one.

Assuming he ignores calls (some from within the coalition) for a switch to a plan B, or a plan A+, and instead sticks rigidly to fiscal austerity, he will have very limited scope for manoeuvre. As a result, rather like the wizard in the Wizard of Oz, he’ll be using all the political trickery, smoke and mirrors he can to create the illusion of doing lots to help the country (and will be especially keen to be seen to help what he calls strivers and “the working poor”) without really being able to do a great deal.

The best outcome for business would be a Budget that really grasps the need to inject growth and confidence into the economy. As ICAEW explained in its Budget submission, this means putting in place the right mechanisms for getting finance to small businesses. This doesn’t mean another rebranding of the government’s lending scheme (which has already been re-launched on several occasions) but it does mean getting the proposed Business Bank up and running properly. It requires the funds already made available, whether through the Local Enterprise Partnerships or other mechanisms such as Funding for Lending to actually get to the frontline.

Accepting the limited scope for action open to the chancellor, combined with the need for a little political magic, (these occasions are often as much about pulling political rabbits out of the hat as they are sensible economics) there will doubtless be a whole raft of changes to various types of taxation.

Personal allowances will be raised, some commentators are expecting a tactical reduction in VAT (possibly for the hospitality sector), while others point to a continuing reduction in corporation tax (this one coming into force in 2014).

In the absence of much room for real action, it is fair to assume there will be a number of consultations announced into a whole host of potential schemes many of which will never amount to much, but which look good on the day.

There will be the usual media flurry listing winners and losers from the budget, all filtered through the current political lens of austerity and Labour’s constant jibe that the Tories are more concerned with helping the rich than the poor.

It’s hard to think that there would be more winners if Mr Osborne listened to the entrepreneurs and made next week’s the shortest Budget in history.

This article first appeared in economia.

Photograph: Getty Images

Richard Cree is the Editor of Economia.

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“I felt very lonely”: addressing the untold story of isolation among young mothers

With one in five young mothers lonely “all the time”, it’s time for employers and services to step up.

“Despite having my child with me all the time, I felt very lonely,” says Laura Davies. A member of an advisory panel for the Young Women’s Trust, she had her son age 20. Now, with a new report suggesting that one in five young mums “feels lonely all the time”, she’s sharing her story.

Polling commissioned by the Young Women’s Trust has highlighted the isolation that young motherhood can bring. Of course, getting out and about the same as you did before is never easy once there’s a young child in the picture. For young mothers, however, the situation can be particularly difficult.

According to the report, over a quarter of young mothers leave the house just once a week or less, with some leaving just once a month.

Aside from all the usual challenges – like wrestling a colicky infant into their jacket, or pumping milk for the trip with one hand while making sure no-one is crawling into anything dangerous with the other – young mothers are more likely to suffer from a lack of support network, or to lack the confidence to approach mother-baby groups and other organisations designed to help. In fact, some 68 per cent of young mothers said they had felt unwelcome in a parent and toddler group.

Davies paints what research suggests is a common picture.

“Motherhood had alienated me from my past. While all my friends were off forging a future for themselves, I was under a mountain of baby clothes trying to navigate my new life. Our schedules were different and it became hard to find the time.”

“No one ever tells you that when you have a child you will feel an overwhelming sense of love that you cannot describe, but also an overwhelming sense of loneliness when you realise that your life won’t be the same again.

More than half of 16 to 24-year-olds surveyed said that they felt lonelier since becoming a mother, with more than two-thirds saying they had fewer friends than before. Yet making new friends can be hard, too, especially given the judgement young mothers can face. In fact, 73 per cent of young mothers polled said they’d experienced rudeness or unpleasant behaviour when out with their children in public.

As Davies puts it, “Trying to find mum friends when your self-confidence is at rock bottom is daunting. I found it easier to reach out for support online than meet people face to face. Knowing they couldn’t judge me on my age gave me comfort.”

While online support can help, however, loneliness can still become a problem without friends to visit or a workplace to go to. Many young mothers said they would be pleased to go back to work – and would prefer to earn money rather than rely on benefits. After all, typing some invoices, or getting back on the tills, doesn’t just mean a paycheck – it’s also a change to speak to someone old enough to understand the words “type”, “invoice” and “till”.

As Young Women’s Trust chief executive Dr Carole Easton explains, “More support is needed for young mothers who want to work. This could include mentoring to help ease women’s move back into education or employment.”

But mothers going back to work don’t only have to grapple with childcare arrangements, time management and their own self-confidence – they also have to negotiate with employers. Although the 2003 Employment Act introduced the right for parents of young children to apply to work flexibly, there is no obligation for their employer to agree. (Even though 83 per cent of women surveyed by the Young Women’s Trust said flexible hours would help them find secure work, 26 per cent said they had had a request turned down.)

Dr Easton concludes: “The report recommends access to affordable childcare, better support for young women at job centres and advertising jobs on a flexible, part-time or job share basis by default.”

Stephanie Boland is digital assistant at the New Statesman. She tweets at @stephanieboland