Another government u-turn
James Forsyth 4:57pmTowards the end of a government, the u-turns come thick and fast. So, after last week’s letter from a group of ex-ministers to Gordon Brown complaining about his plan to abolish a childcare tax break, the credit will now only be scrapped for those paying above the basic rate of income tax. (The Sunday Times reported the story this morning and Ed Balls pretty much confirmed it talking to Adam Boulton).
Balls tried to argue that this is the Labour approach, support for those at the bottom paid for by taking away benefits from those at the top or taxing them more. But the u-turn means that the saving will only be a third of what was intended. If Labour really want to start bringing down the deficit, then they are going to have to have the political courage to advance measures that will spread the load of deficit reduction across more people than just top-rate taxpayers.
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Stuart Beamish
November 15th, 2009 6:31pm Report this commentWhich is why we need an election now ~ they are no longer capable of governing the country.
Running the country is not a popularity contest, sometimes you have to do something unpopular - not just try and sneak it through as an amendment.
Tim Worstall
November 15th, 2009 8:28pm Report this comment"the credit will now only be scrapped for those paying above the basic rate of income tax."
Oh joy, so marginal tax rates take another little step upwards.
Peter From Maidstone
November 15th, 2009 8:39pm Report this commentCan you call it what it is, a proposed tax increase. Nothing more nor less. There is no such thing as a tax credit, as if it were something being munificently provided by a kind lord, it is all just a game to employ as many people as possible in administrating a deliberately complex and opaque system.
Gordon Brown takes most of our own money from us, and occasionally allows us to keep a little more of our own money. Tax credits are not money being given to us, it is just Gordon stealing a little less, but he will always find another way of taking our money from us.
No taxation without representation! Sheesh, those American dis-Loyalists didn't know the half of it.
JohnAnt
November 15th, 2009 8:54pm Report this commentSurely not 'top rate' (50%+) taxpayers, James, but higher rate 40% taxpayers? (That's my understanding, anyway.)
Given fiscal drag the 40% band now includes a hell of a lot of people. And it doesn't seem fair if suddenly at the 40% margin, although they may only pay the 40% on, say, £100, they still lose the £2k voucher. You might as well ring a handbell and call out 'Unclean!'
Anyway, won't those who pay 40% tax just get their lower-earning partner to make the application, where that switch is possible? And who says it's fairer for two people earning up to £86,000 to have a voucher, and refuse it to a single working parent running a family of children with half that amount?
This really is just about Labour voter demographics, isn't it.
Holly ......
November 15th, 2009 9:24pm Report this commentIt would be interesting to know, how much tax does Labour think the 'top-rate taxpayers can pay, before they too become lower income families?
Moraymint
November 15th, 2009 9:31pm Report this commentUsual Labour shambles.
How does one go about withdrawing one's consent to be governed, please?
Robert Pelik
November 15th, 2009 10:25pm Report this commentI just came across a remarkably good epitaph for New Labour in G.K.Chesterton (from 'The Common Man'): "unless a man has a philosophy certain horrible things will happen to him. He will be practical; he will be progressive; he will cultivate efficiency; he will trust in evolution; he will do the work that lies nearest; he will devote himself to deeds, not words. Thus struck down by blow after blow of blind stupidity and random fate, he will stagger on to a miserable death with no comfort but a series of catchwords”.
Snowman
November 15th, 2009 11:29pm Report this commentMoraymint: we're stuck, and it's our fault. Just take up knitting or raising pigeons, you'll be OK.
Snowman
November 15th, 2009 11:36pm Report this commentStuart Beamish & co: will you please enlighten me on what will happen after the blessed election? Will roasted chicken fall from the skies, or what? I cannot see Dave making any such promises, can you?
wrinkled weasel
November 15th, 2009 11:58pm Report this commentA remarkable quote, Robert Pelik, but you could just as easily apply this to David Cameron, who is on public record as eschewing philosopy in favour of pragmatism.
Amadeus Plonquer
November 16th, 2009 1:46am Report this commentMoraymint: How does one go about withdrawing one's consent to be governed, please?
Believe it or not you can do this by submitting two signed affidavits to the Queen. Have a look at: http://www.tpuc.org/node/257
This right is anchored in Magna Carta, initially as a right of the people against a rogue monarch but equally applicable against an elected government. It's a strategy employed by those litigating against local government, is perfectly legal and it works.
But don't go spreading this around. We don't want millions of intelligent people resigning their right to vote before we give Brown a good kicking, do we?
Austin Barry
November 16th, 2009 7:41am Report this commentMoraymint: the Civil Service could do us all a favour by a de facto refusal to implement any of these final gambits by Labour. Just play the ball into the corner and impede the desparate lunges of Gordon "Chopper" Brown and Peter "Bites yer Legs" Mandelson until the final whistle.
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