Rev Ian Galloway: Budget should be judged on how the poorest fare

BUDGET decisions are moral decisions and the government’s taxation and spending choices have a big impact on inequality and poverty.

Christian principles suggest we should have considered the poorest and most vulnerable in society as our main priority. How the rich and powerful care for and look after those less fortunate is probably the ethos of a Christian society.

Budget decisions are moral decisions too when it comes to the fair sharing of the burden of paying for tax and spending decisions. Those blessed by affluence have a responsibility and a moral obligation to protect and support those in need.

Fundamental to all these considerations has to be the question: what is the purpose of economic activity? A Church of Scotland Commission is soon to publish a report into just this question, which will highlight the need for our economy to reduce inequality, tackle poverty and ensure sustainability.

So how does the Budget relate to these principles? The proof of the pudding will be in the eating, and only time will tell if this Budget and this government will succeed in reducing inequality or increasing it, in tackling poverty or not.

Tax avoidance and evasion is morally wrong. I am interested that the government will now consult on legislating for a General Anti-Avoidance Rule as recommended by the Aaronson Report.

Tax rates need to be set so the wealthiest bear the largest burden. Tax must be seen as a public good, rather like volunteering or contributing to a charity. It is through tax that the society we want, with its safety nets and protections, is maintained and enhanced.

An increase in personal tax allowance will benefit lower-paid workers. A corresponding cut in the top rate of tax will leave many people asking questions about what is really fair.

It is understood the driving principle of the government is to reduce the deficit so that, in five years, Britain’s debt will stop increasing. However, it is important that the cuts to spending do not fall heavily on those who are already on the edge of society.

• The Rev Ian Galloway is convener of the Church and Society Council of the Church of Scotland.