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Alistair Darling’s decision to raise taxes on drinkers and drivers is backed by a clear majority of voters in an exclusive new Times poll.
The Populus poll, undertaken on Wednesday evening, shows that the public is resigned both to higher taxes and to being worse off over the coming year. A majority believes that the Budget will not make much difference and there is little that the Government can do about the economic outlook.
Expectations are low and there is no confidence that a Conservative Budget would have been better for most people.
The poll provides the first indication of the public’s response to Wednesday’s Budget. Mr Darling will be relieved that voters are not more hostile.
The most striking finding is that more than half the public (55 per cent) agree with the big increases in duty on beer, wine and spirits. Women (61 per cent) agree more than men (50 per cent). Support is higher among middle-class than working-class groups.
An even higher proportion (68 per cent) back the big increase in the vehicle excise duty levied on “large, so-called gas-guzzling” cars. Professionals and managers, who are the most likely to own such cars, are even more in favour (75 per cent).
There is a small majority (51 to 44 per cent) agreeing with the general principle that, if taxes need to rise, raising duty on alcohol and on gas-guzzling cars is the best way to do it. Voters strongly approve, by 71 to 24 per cent, the use of these higher taxes to fund increases in child benefit and the winter fuel allowances for over-60s.
But the public is realistic about the implications. Nearly two fifths (38 per cent) believe they will pay more tax than before, and just 4 per cent less — and 42 per cent think they will be worse off after the Budget. Men (50 per cent) are more pessimstic than women (36 per cent), and more men (43 per cent) than women (33 per cent)also believe they will pay more in tax.
A quarter of the public (26 per cent) think the Budget will be bad for British businesses and just 9 per cent good. Similarly, 23 per cent think it will increase the risk of a recession, and 6 per cent reduce one.
However, in answer to all these questions, between two fifths and a half think that the Budget will make no real difference. The public is sceptical about what difference any Budget or chancellor can make. Two thirds (66 per cent) think that “Britain’s economic position and prospects are affected much more by the conditions of the global economy than by anything that the Chancellor of the Exchequer does”. Global, and especially US, economic problems have been emphasised by Mr Darling in contrast to the Tories’ emphasis on Labour’s spending and borrowing binge.
Two thirds (65 per cent) say they do not pay “much attention to the debate about the Budget because you can’t believe anything any of the parties say when it comes to tax, public spending and economic statistics”.
More than nine out of ten voters (93 per cent), as near as you are ever likely to come to unanimity in any poll, agree that, whoever is in government, “it always seems that when the Budget comes, they give with one hand and take back with the other”.
Moreover, the poll shows that most voters do not think the Budget would have been better if the Conservatives were in power. More than two fifths think it would make no difference.
Populus interviewed a random sample of 596 adults aged over 18 by telephone on March 12. Interviews were conducted across the country and the results have been weighted to be representative of all adults. For more details go to www.populus.co.uk.
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