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..There's a little Samuel Pepys in all of us..

Wednesday, March 21, 2007

One of the oddest moves seen in ages by Gordon today.
Keeping in mind, he's still living in No.11, and is still the Chancellor of the Exchequer, he delivered, without a doubt, his last budget today, and dropped a political bombshell.
Now Gordon's never been one to be reknown for dropping taxes, or reforming the system of taxation, but today, he lowered the basic 10p taxation rate, and raised the threshold for National Insurance contributions...
He dropped what is potentionally £9.5 billion in taxation revenue, while increasing that same revenue by £8.5 billion.. apparently tossing away a billion Pounds..
But, he's removed business tax perks, such as 'Industrial Space taxation'.. which will hit the likes of the airports, the railways, conglomerates who own large tracts of land which industries are built..
And that's how that apparent shortfall will be recouped..
So, if the smoke and mirrors are removed, Gordon's done effectively nothing, for the 2p tax drop for the average taxpayer, will be taken back by those businesses who's profit margins will not be left to absorb the losses they'll incur..
So while the man on the street might think this to be 'The Last Hurrah' of an exiting Chancellor.. a magnanimous gesture from the man who'll next be leading the country.. it is in actuality, nothing more than a headline-grabber..
It's something the Tories will, have a field day with..
The Conservative Leader has already jumped on Gordon's budget.. accusing the Chancellor of 'blowing open' his own arguments..
David, in his reply to the budget, said it proved what the Tories had said all along - "that you can share the proceeds of growth"...adding.. Gordon usually saved pledges for a general election but was in "a deep hole" in the Labour leadership race..
That the tax cut would be cancelled out by the abolition of the 10p rate of income tax...
David told Gordon point blank:

"You are the chancellor who has taken one tax down but put 99 taxes up.
The average family is paying £1,300 more because of your Budget decisions."

This, referring to Labour initial promise, lo all those years ago, that taxes would 'never' be raised under their leadership..
It seems to make no sense whatsoever.. to offer something to the Opposition, that will cast even more doubt on the Labour Party, their direction, and certainly their leadership..

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