I couldn’t let the week pass without commenting on Gordon Brown’s last Budget, which looks to be the dodgiest yet. I say “looks to be” because it always takes days, if not weeks, of analysis of the Red Book before you can tell just how bad any of Gordon’s budgets were. They are so very opaque.
However, what is clear is that, despite the rabbit-out-of-a-hat flourish of the 2p reduction in the basic rate of income tax (not to take effect until next year, mark you), most people will be either no better off or actually worse off as a result of the Budget. Gordon was just shuffling taxes around, not reducing them. This con-trick has already rebounded on him in terms of public disapproval; people are not as stupid as he seems to think, and I anticipate a further fall in his already dire poll ratings.
The abolition of the 10p tax band was a cynical manoeuvre that will positively damage low earners with income of less than £18,000, particularly the single young and older workers below retirement age. Quite why Labour thinks it a good idea to penalise the poorest in the country, I can’t imagine.
All in all, the Budget was particularly bad for Wales. The Chancellor announced that smaller company corporation tax will go up by 3p over the next three years. There will, it is true, be some Byzantine additional capital allowances, but these will be of little help in the labour-intensive service sector, which is where most Welsh companies operate.
Farmers, too, were bashed by the hike on vehicle excise duty – going up to £400 in two years. Nothing illustrates more the fact that Labour is an inherently urban party, with little understanding of, or care for, the countryside, than their notion that the 4x4 is a dispensable, gas-guzzling luxury for the self-indulgent Knightsbridge set. It’s not; it’s a working necessity in rural Wales. Next time Gordon Brown is in Wales (unlikely to be in the near future, I’d guess), he should try driving over a boggy field in Cerrigydrudion in a G-Wiz electric car; that might change his mind.
With the departure of Tony Blair just over the horizon, I look forward to Gordon Brown’s anointment as incumbent of No.10. He of the clunking fist will do the Conservative Party nothing but good. As David Cameron memorably put it in his Budget response, Labour will have a leader with “the tendencies of Stalin and the poll ratings of Michael Foot.”
However, what is clear is that, despite the rabbit-out-of-a-hat flourish of the 2p reduction in the basic rate of income tax (not to take effect until next year, mark you), most people will be either no better off or actually worse off as a result of the Budget. Gordon was just shuffling taxes around, not reducing them. This con-trick has already rebounded on him in terms of public disapproval; people are not as stupid as he seems to think, and I anticipate a further fall in his already dire poll ratings.
The abolition of the 10p tax band was a cynical manoeuvre that will positively damage low earners with income of less than £18,000, particularly the single young and older workers below retirement age. Quite why Labour thinks it a good idea to penalise the poorest in the country, I can’t imagine.
All in all, the Budget was particularly bad for Wales. The Chancellor announced that smaller company corporation tax will go up by 3p over the next three years. There will, it is true, be some Byzantine additional capital allowances, but these will be of little help in the labour-intensive service sector, which is where most Welsh companies operate.
Farmers, too, were bashed by the hike on vehicle excise duty – going up to £400 in two years. Nothing illustrates more the fact that Labour is an inherently urban party, with little understanding of, or care for, the countryside, than their notion that the 4x4 is a dispensable, gas-guzzling luxury for the self-indulgent Knightsbridge set. It’s not; it’s a working necessity in rural Wales. Next time Gordon Brown is in Wales (unlikely to be in the near future, I’d guess), he should try driving over a boggy field in Cerrigydrudion in a G-Wiz electric car; that might change his mind.
With the departure of Tony Blair just over the horizon, I look forward to Gordon Brown’s anointment as incumbent of No.10. He of the clunking fist will do the Conservative Party nothing but good. As David Cameron memorably put it in his Budget response, Labour will have a leader with “the tendencies of Stalin and the poll ratings of Michael Foot.”