A general election atmosphere at Westminster today. Gordon Brown called a 9.30 press conference so David Cameron pre-empted it by holding one at 8.30, complete with bacon butties for early risers like me. I almost expected the Liberal Democrats to call a 7am presser, which is what they have to do to get a hearing at election time.
The issue which dominates most elections - tax - was top of the agenda too. Brown gave another hint that unfunded tax cuts will be announced soon to try to keep the economy moving. He wouldn't go into detail but stressed the need for an international "fiscal stimulus" with countries co-ordinating their action. Naturally, the PM was dismissive of Cameron's £2.6bn plan, which aims to safeguard 350,000 jobs by handing firms a £2,500 national insurance cut if they take on someone who has been out of work for three months.
The Tory leader's scheme got him back into the tax game but it smacked a little of panic. Brown looked the more confident and commanding figure today, safe on the home ground he knows so well from 10 years as Chancellor. He will be an important player at talks involving 20 world leaders in Washington this weekend.
Cameron made the new dividing line in British politics whether the Government should finance any tax cuts from even higher borrowing. He says No, Brown says Yes. But the momentum in the great tax debate is with Brown for now, not least because he can take action that will affect people's pockets rather than just call for something. Some Labour MPs sense a "win, win" position: if tax cuts help win a general election, Brown will have five years to balance the books. If Labour loses, then Cameron will have to clear up the mess - and raise taxes. Naughty.
What kudos from you Mr Grice and Mr Richards. In doing so you sound so party partisan that your comments lose their value.
Let us examine what you are saying:
.."safe on the home ground he knows so well from 10 years as Chancellor. He will be an important player at talks involving 20 world leaders".
So you applaud Brown for raiding pension funds, sinking billions into NHS without tangible results and creating boom and bust through letting credit boom escalate and making BOE and FSA so weak in their oversight powers that they were wringing their hands for weeks when Northern Rock was going down the abyss. Please listen to Brown's annual lectures to the City and his pep talks to Europe about his wonderful work at home.
Now about Brown being an important player. Didn't you read that Merkel is already there and wants to cut taxes to stimulate economy. Brown simply following what Germany stated it will do. What an egoist your Brown is. With a track record like his, they should be mad to listen to him.
Posted by: Norman | Tuesday, 11 November 2008 at 01:48 PM
for anyone, let alone a financial journalist, to lend credibility to Gordon Brown beggars belief!! This man has spent the last 11 years talking about his success in bringing stability and "no more boom and bust". In recent weeks we have had wild swings in bank base rate (40% reduction in 4 weeks), massive falls in house prices (15% in one year), massive volatility in the stock market and huge rises in unemployment. Now, this master of tax, borrow and spend is talking about the need for tax cuts across the world!! The man is absolutely clueless.
Posted by: Jeff Turner | Tuesday, 11 November 2008 at 02:28 PM
If tax cutting is such a wonderful idea (and I think we are taxed too much) then why wait until we are in a recession. We should be taxed less, which would curb the need for pay increases and make us a more competitive country.
To pay for this we should cut the bloated public sector, with their protected pensions schemes for which we are paying dearly, more in fact than we put into our own schemes.
Brown should go to the country as early as possible and let the electorate decide.
Posted by: Martin Quince | Wednesday, 12 November 2008 at 04:33 PM