Aspects Of Hunt's Budget Plan Need A Second Look

There is an old Westminster adage that a Budget that looks good on the day will look terrible in the morning, and Jeremy Hunt's first (formal) effort as chancellor looks to be conforming to the saying, at least to some extent.

In contrast to Mr Hunt's first efforts last year, which rescued the public finances after the disastrous Truss-Kwarteng dash for growth, and have stood the test of time well, his latest package has raised almost as many questions as it has answered. Mr Hunt and his colleagues would do well to address them sooner rather than later.

The most troublesome looks to be the reform to the size of pension pots individuals are allowed to amass over their lifetimes. Once there was no limit at all. But, more than a decade ago, George Osborne, as chancellor, ruled that the generous tax reliefs available to those wealthy enough to be in that position should be capped when the value of the funds reached about £1m.

As ever, that rule came to have unintended consequences when senior NHS doctors, in particular, found that the loss of that tax perk blunted their incentive to work. It has been one powerful reason why so many GPs have reduced their hours or retired early, creating a shortage of capacity in primary care and the madness of the 8am telephonic "fastest fingers first" scramble for an appointment.