A Look At The Government Policies That Will Impact On You In 2015
Just three months have passed since the Conservative's landslide election victory, but what are the key policies and talking points that have dominated the headlines so far?
Just three full months after being re-elected, the Conservatives second term of office is already suffering from a lack of positive sentiment. While second quarter economic growth in the UK remained steady at 0.7%, for example, this was below the initial growth forecasts published at the beginning of the year. This embodies the malaise that is gripping the economy at present, especially as the threat of a Chinese financial collapse continues to cast a shadow of Britain and the Eurozone.
A look at 3 Key Government Policies and what they mean for British Citizens
These facts are largely outside of the government's control, however, so it is perhaps fairer to judge them on their proposed policy measures and the impact that these have had (or are likely to have) on British citizens. Let's consider the following examples: -
1. Increasing Tax on Alcohol in the UK
Alcohol is a controversial issue in the UK, especially with British society considered to be afflicted by a so-called 'binge drinking' culture. Not all producers or distributors of alcohol are purveyors of doom that are preoccupied with achieving a profit ahead of anything else, however, with some delivering ethical and thought-provoking beverages that traverse the worlds of art and design. Despite this, the Conservatives are still pledging to increase the tax levy on alcohol by as much as 10%, in a bid to tackle binge drinking and challenge behaviours.
Thanks a report by the party's social policy group, there has been a recommendation to double 'treatment tax' in the UK, which currently stands at £400 million. This makes sense to some degree, especially when you consider the burden that alcohol related injuries and abuse place on the NHS on an annual basis. From your perspective as a consumer, you can expect the cost of alcohol in off-licenses and bars to rise exponentially in 2016, although this contributes to an improved NHS service has yet to be seen.
2. The Benefits Debate: Introducing a £23,000 Cap
Ah, the Great British benefits debate. This is something that has polarised the UK in the last 18 months, with those on one side of the debate believing that an overhaul of the existing benefits system is long overdue and others suggesting that it is an attempt to marginalise the lower classes. The truth sits between these two extremes, of course, but the fact remains that benefits are going to be capped at a maximum of £23,000 per household in the next 12 months.
The sticking point here seems to be that this is below the minimum wage, although the government have argued that this is create greater incentive for individuals to work. It will certainly hit some families hard, however, especially those who struggled with the interim cap of £26,000 that was set previously. The biggest problem is that such a policy does not take into account the exalted rents in London, where families must rely on bigger hand-outs to afford even modest homes. It may be that some compromise is required in the coming months, so that affected citizens can come to terms with the impact of the policy.
3. Europe will become a Decisive and Damaging Issue
On a similar note, the issue of Europe and Britain's participation in the EU is another hot topic that polarises opinion. We are set to have a government-backed referendum in 2017, which will afford us the opportunity to vote on whether or not we want to be a part of the EU. While some are in support of this (including senior Tory politicians with a penchant for Britain as an independent sovereign state) it is important to have a clear understanding of how leaving the EU will impact on businesses, the economy and the typical consumer experience.
Businesses are certainly loath to leave the EU, especially given the impact that this will have on trade and the cost of importing and exporting goods. From a consumer perspective, the cost of travelling around Europe would also soar exponentially, so there is plenty to consider for all parties involved. While delaying the referendum would create even greater uncertainty and there is little chance of the Conservatives changing their mind, it is important that voters are educated on the consequences before making an informed decision.
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