BUDGETS are accompanied by a blizzard of documentation designed to illuminate the detail of the big fiscal events. But the real effect can be to obscure what the real thrust of policy is and what its impact is.

The confusion surrounding the October 2024 Budget is even greater than usual. Essentially, what is being discussed as a huge tax-and-spend Budget is in reality, a Budget which not only extends austerity but actually deepens it.

First, let us highlight some of the things that have happened (or not) that give the lie to the idea that this is a big tax-and-spend Budget. One striking development is that the IMF has welcomed the Budget. The IMF has never supported what might be called “Keynesian” increases in taxes and public spending; it is an institution gripped by neoliberalism. But it specifically welcomes the central aim to “reduce the deficit by raising revenues.” As we shall see, the burden of that deficit reduction will be taxes on ordinary people.