One of my photos


November 24th, 2008 · Posted by Skuds in Politics · 2 Comments · Politics

A lot has been written about Darling’s pre-budget statement. In fact more has been written than anybody could manage to read, and that is a good thing: knowing that it is imposible to read it all means you don’t have to try – but one particular thing well worth reading is Snowflake’s comment on the whole thing.  I could just quote the whole lot, but I will limit myself to the last bit:

So now the battle for the next election is set. People in 2010 will be voting to either increase tax on those over £150k to 45%, or to vote Tory and keep the top rate as it is, to increase the inheritance tax threshold to £2 million from the current circa £600k, and to pay for it by physically closing hospitals.

Personally I am quite pleased with some of the measures.  Dropping VAT can only be a good thing. A shame it is just temporary.  Yes it is only going to represent about 2.2% off most prices, but that can make the difference to people who are just breaking even.  Someone who has to count every penny will notice two of them in every pound. I would rather see VAT kept as 15% (or lower) for good and see the tax system reduce regressive taxes and increase progressive ones instead.

What I am not so sure about is suggesting that taxes for earnings over £150,000 could go up to 45% after the next election.  Why not make it earnings over £100,000 instead?  Or even make it 46%?  And why wait until after the election?   I know all about these manifesto promises but then these are unusual times requiring responses that would have been unanticipated at the last election – the manifesto didn’t say anything about nationalising banks did it?   For the sake of potentially bringing the extra revenue in earlier, and since it was an unequivocal manifesto pledge why not hold a referendum at the same time as the local/European elections?

By doing it at the same time it would not have the extra cost that a referendum normally would, and it could have the extra effect of increasing turn out at elections that many people don’t normally bother with.  Just a thought.

I’m just happy to see Labour and the Tories violently disagreeing on a matter of principle: it has been such a long time…


2 Comments so far ↓

  • skud's sister

    I knew that Cameron couldn’t keep his promise to play nice over the economic crisis…

  • Hiro

    Well the Weconomic crisis” its hardly going effect Cameron and his Eton chums is it? Unless they raise the cost of Crystal by a long long way.