"I am not the Chancellor, the man with the power," Gordon Brown quipped at the CBI's annual conference in London this morning. Well, you could have fooled me. Or most people in the Westminster village. Brown's most hardened Labour critics, such as the senior backbencher Frank Field, argue that he is doing well in the economic crisis precisely because he is Chancellor again.
To be fair to the official Chancellor Alistair Darling, he has not rolled over in the face of Brown's demands as he finalised today's landmark Pre-Budget Report. Insiders say Darling has fought his corner, so the package is a joint effort, a compromise between the Chancellor and his predecessor.
The
mini-Budget is making headlines even before Darling delivers it, thanks
to advance leaks from the Government. Yesterday we heard about the
temporary cut in VAT from 17.5 to 15 per cent. Today we learn of a
dramatic rise in the top rate of income tax from 40p to 50p in the
pound for people earning about £150,000, to take effect after the next
general election. This is a seismic change, the abandonment of a
central tenet of New Labour, which was desperate to reassure the rich
that it wasn't out to soak them.
Brown calculates that the mood has changed since the 1990s. Public anger over City fat cats and bailed-out bankers mean the proposed top rate rise could be popular. The move creates yet another dilemma for David Cameron, who wants to make the temporary tax cuts announced today permanent. But he will be wary of being trapped into opposing a tax on the rich. Time for the Tories to hold their nerve and to hope that other voters, not just high earners, fear they will be clobbered in a couple of years as the Government gets its sky high borrowing under control. The political and economic picture may look very different by the middle of next year. But that will be cold comfort to the Tories today. For now, Brown holds the whip hand.
Brown calculates that the mood has changed since the 1990s. Public anger over City fat cats and bailed-out bankers mean the proposed top rate rise could be popular. The move creates yet another dilemma for David Cameron, who wants to make the temporary tax cuts announced today permanent. But he will be wary of being trapped into opposing a tax on the rich. Time for the Tories to hold their nerve and to hope that other voters, not just high earners, fear they will be clobbered in a couple of years as the Government gets its sky high borrowing under control. The political and economic picture may look very different by the middle of next year. But that will be cold comfort to the Tories today. For now, Brown holds the whip hand.
Andrew,
The deleveraging is gathering pace:
~Finance.
~Consumer.
~Business Capex (balance sheet).
This is a wicked triple whammy that will blow Darling's budget to smithereens.
Brown is now at the mercy of the markets and they are moving so quickly that he will soon be made to look powerless. He has now spent his political capital.
Posted by: Death to Bubble Addicts | Monday, 24 November 2008 at 06:17 PM
Despite the excuses of this credit crunch now recession starting in the American housing market. Brown and Co' did see this coming but were powerless to stop it. It comes as no surprise that the majority of people in the UK will face some real long term hardship. This country has the biggest debt of all in comparables and it is us who will have decades of footing the bill.
I would like to warn everyone that whatever deals Gordon makes in the coming year and half should be closely watched as it is my opinion he will tie this country so far into European fedaralist dealings that we will suffer not just footing an unprecidented debt but end up bolstering smaller European member states.
The recession is big news and rightly so but just remember this my dear Mr Brown; you shafted us on pensions and failed to give us our say on Europe, you are unelected by the public and have managed to steer every working class person in this country into some horrible black times.
You can go much further in winning some public support by setting a ruling that all members of Parliament pay for their own pensions and not from the tax payer. This too should apply to all civil servants. The expenses that you all can claim should be limited to £10,000 per year to cover all expenses. Expensive state functions should be cut by 90% and as much as I admire the Royal Family they too must now move with the times and become more self sufficient.
If you wish to win the next general election you must have full transparency in the government and have all expenditures open to the public. In other words I demand a total breakdown of exactly where my tax money is being spent and 99.9% of my taxation had better be spent in the UK. Just three words if applied by Labour will win the next election. TRANSPARENCY / SERVITUDE / LISTEN...
Posted by: John Finningham | Wednesday, 26 November 2008 at 04:19 AM
Just remember what I have stated before and that is we should not give Brown an inch on the joining of the European Federal state as an excuse to save the economy of Britain. It is not just due to the global recession that European money outside of the Euro currency is under threat. This move to boost the Euro further is to soften the blow for the electorate when Brown and the Euro job seeking Labourites hail the Federal state as part of a new global elite.
I admit on pure business terms the Euro is more attractive but for the comman workforce it means higher unemployment and that is just as bad as this coming recession not to mention lower wages and little national identity under the Euro. Europe must be the choice of the public and although Brown may be a hero on the economic crisis at the moment we must never forget his signing of the Lisbon Treaty which was an insult to the entire country. As this was allowed to go on with very little critisism is indicative of the Government's corrupt control over the freedom of speach and an outright attack on our liberty.
Again when is anyone in the Government going to have the balls to face my questioning in an open debate?
Posted by: John Finningham | Tuesday, 09 December 2008 at 05:21 PM
how are you taking taxe in the fedarelistic state. is there differences betwen the states in taking the taxes like developing state and developed. i am going to write the term pepar on the topic of "taxe system in the federalistic country.
Posted by: Nir bahadur tamang pakhren | Sunday, 08 February 2009 at 10:11 AM
He saw this coming without a doubt. By increasing the tax to 50p is only going to drive people away that this country needs.
Posted by: Rob Stevenson | Tuesday, 23 June 2009 at 10:59 PM
Thank you very much. I am wonderring if I can share your article in the bookmarks of society,Then more friends can talk about this problem.
Posted by: lotro powerleveling | Thursday, 25 June 2009 at 10:02 AM
It always seems that anyone that has taken a risk and then been rewarded is always somehow hindered by the Government and their desire to take a slice of the pie.
Posted by: Tony Williams | Friday, 03 July 2009 at 10:04 AM
Whether a return is required depends on age, the amount and type of income, marital status, and whether the individual is a dependent of another taxpayer or not.
Posted by: mothers day flower | Tuesday, 13 October 2009 at 01:59 PM
This would only provide the local tax authority with information. It would not result in a payment/refund. For Federal and most States, filing requirements are based on income, not age.
Posted by: mothers day flower | Tuesday, 13 October 2009 at 02:01 PM
if for nothing else but to get the taxes they took out refunded back to you. Depends on what you put on your W-4 form and how much you make if they take Fed Taxes out. You will always get SS and Medicare taken out.
Posted by: mothers day flower | Tuesday, 13 October 2009 at 02:02 PM
Brown really has been amazingly unpopular over there in the UK hasn't he? I feel for you guys...though I'm yet to see how Obama works out for us.
Posted by: Barack Stimulus Package | Wednesday, 28 October 2009 at 11:34 PM
Ahh...typical Brown, he parades around the stage, claiming hes saving the world - as he did at his banal speech at St Andrews five minutes ago - whilst claiming NO responsibility for the ironically titled 'global' financial crisis which had its origins in the profligate spending habits and lax monetary policy a.k.a the 'Washington Consensus' of the New Labour and Bush administrations.
Watching Brown proclaim he wants to get a fair G20 deal for those across the world who work hard and are responsible is enough to send one into a cardiac arrest. The sheer hubris of the man, he alone takes the responsibility for taxing most Middle Class brits out of existence. His government is dying and it shows, he's irrelevant, all eyes will be on the US, China, Brazil, India and Russia the only countries that can solve this crisis!
One more thing Mr Brown...don't clobber wholesale financial markets as part of your global deal, without them there would be no such thing as Government Borrowing, we would default on the National debt and the true colours of Brown's 'economic miracle' will be revealed - but then again this will be Cameron's problem. God help us all
Posted by: 54 | Saturday, 07 November 2009 at 11:19 AM