Thursday, May 15, 2008
That 10p fudge
A bit late I know but hey, this is not a news site. Chancellor Darling's supplementary budget may well have taken the sting out of the doubling of the 10p tax rate for many but it has still left 1.1 million low-paid taxpayers worse off. It also smacks of desperation, something that the Government could still be punished for in next week's Crewe and Nantwich by-election.
It is little wonder that former Labour Assembly Member and by-election candidate, Tamsin Dunwoody, is in a state of uncertainty as to whether Gordon Brown is an asset or not. All the evidence is that he is liability, even putting his jinx on Glasgow Rangers in last night's UEFA Cup final.
So what are the facts about the Chancellor's rescue package? Well, whilst Liberal Democrats welcome the Government’s belated conversion to lifting the low paid out of tax, Alistair Darling chose to play down several of the effects of his announcement:
1. Even after today’s announcement, 1.1 million people earning between just over £6,500 and £12,800 will still lose out under Labour’s doubling of the 10p rate.
2. Of the 1.1 million people losing under Labour’s current plans, some will still lose up to £100 per year.
3. Of the £2.7bn spent on increasing the personal allowance, only around £630m – less than a quarter – will actually go to the 5.3 million people who lost out under the 10p rate, making it an extremely poorly targeted policy.
4. This additional spending will mean that net government borrowing for this year will rise to £45.7bn, a 6% increase from what was predicted two months ago and a 50% increase from what was estimated just one year ago.
It is little wonder that former Labour Assembly Member and by-election candidate, Tamsin Dunwoody, is in a state of uncertainty as to whether Gordon Brown is an asset or not. All the evidence is that he is liability, even putting his jinx on Glasgow Rangers in last night's UEFA Cup final.
So what are the facts about the Chancellor's rescue package? Well, whilst Liberal Democrats welcome the Government’s belated conversion to lifting the low paid out of tax, Alistair Darling chose to play down several of the effects of his announcement:
1. Even after today’s announcement, 1.1 million people earning between just over £6,500 and £12,800 will still lose out under Labour’s doubling of the 10p rate.
2. Of the 1.1 million people losing under Labour’s current plans, some will still lose up to £100 per year.
3. Of the £2.7bn spent on increasing the personal allowance, only around £630m – less than a quarter – will actually go to the 5.3 million people who lost out under the 10p rate, making it an extremely poorly targeted policy.
4. This additional spending will mean that net government borrowing for this year will rise to £45.7bn, a 6% increase from what was predicted two months ago and a 50% increase from what was estimated just one year ago.
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The lowest paid have been screwed for the second time. How Frank Field can sleep at night, i dont know. All labour care about are themselves.
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