Treasury

A number of papers report today that George Osborne is minded to replace the 50p tax with Gordon Brown’s original proposal: a 45p tax. How the ex-PM will be laughing. As he knows, even the 45p tax will lose money — that’s why Labour didn’t raise the top rate until the final four weeks of its 13 years. But the Tories haven’t worked that out yet, and the Treasury is still working on the false assumptions he programmed into it. In short, the amount of money that either tax rate will raise depends on what’s called the “taxable income elasticity,” or TIE — a figure suggesting how responsive various taxpayers

One of the things about the press that politicians frequently complain about is that papers concentrate more on personalities than policies. But reading the latest extracts from Alastair Campbell’s diaries you see just how much personality matters. Indeed, according to Campbell, Tony Blair excluded Gordon Brown from a discussion about what to do after 9/11 not because of any difference about how to respond but because he had become fed up with how difficult Brown was to deal with on a personal level. Now, there are nowhere near the personal tensions at the top of this government that there were in the last one. But because politicians are humans and

There has been much talk about what George Osborne told Alistair Darling about the EU bailout mechanism during those days in May between the election and the coalition being formed. But notes of a conversation between Osborne and Darling released today show that Osborne did urge Darling not to commit to anything that would have a lasting effect on the public finances. Osborne also suggested that the UK government might abstain due to the fact that the country was between governments. To which Darling’s reply was that the Cabinet Secretary’s advice was that the government was the government until a new one actually took office. It remains to be seen

Less soap opera, and more policy grit, in today’s batch of Ed Balls files. There is, for instance, a lot on Gordon Brown’s proposed Bill of Rights (here, here, here and here), which is as ambrosia for future political historians, but is fairly turgid reading even for today’s political anoraks. Likewise the charts and doodlings related to the structure of Brown’s Downing Street. Yet some things do stand out. Here are a few of them: i) What the Treasury says, Brown didn’t do. You’ve got to admire the Treasury’s attempt to inject some realism into the fiscal calculus back in 2006. “Flat real” spending — i.e. public spending that rises

Today, the government launched its Natural Environment White Paper. This document is a vision for how we value and use nature, now and in the future. The public was heavily involved in the White Paper’s creation. Thousands of suggestions came from individuals and small local naturalist groups, right up to large national NGOs and bodies like the National Trust. This shows that concern for nature is alive and well in Britain. The paper was launched by Caroline Spelman; but, crucially, it received input from Greg Clark from Communities and Local Government and Norman Baker from Transport. The Treasury have also been close partners. The proposals seek to reconnect people with

While Dominque Strauss-Kahn was in a New York court room, pleading not guilty to charges of sexual assault, his former IMF colleagues were delivering their verdict on the UK economy at the Treasury. The IMF are very polite guests and their report has provided some timely support for the coalition’s fiscal approach by declaring that there is currently no need for a Plan B. The Osborne operation has been quick to point out that even in various alternative scenarios the IMF set out in their report, they don’t call for more spending or smaller cuts. But there are things which the IMF says that won’t be music to Osborne’s ears.

At the weekend, it appeared that Chris Huhne had won his battle with Vince Cable and George Osborne over whether or not the government should sign up to the 4th carbon budget. This budget covers 2023 to 2027 and is all part of a plan to cut carbon emissions by 80 percent by 2050 compared to the level in 1990; they have currently been reduced by 26.5 percent from the 1990 level. But it now appears that the greens in government might have been premature in declaring victory. First, the next set of cuts in UK carbon emissions is dependent on the European Union agreeing to embark on an equally