Tuesday, May 13, 2008

Its only £2.7 billion, Gordon.

Is the Crewe and Nantwich By-election the most expensive in history? Of course it could be that today's decision by the Chancellor of the Exchequer to borrow another £2,700,000,000 to give another £120 to 22 million people earning up to about £40,000 per annum was nothing to do with the by-election. But you have to admit that it does look a bit odd, a bit of a coincidence.

In general, I've always been supportive of raising the personal tax allowance as much as can be afforded - to take people out of the income tax system altogether. So today's shock decision to raise the allowance for all 22 million taxpayers by £600 does sound rather a good thing to me - if its part of a planned budget. But today's announcement does not seem tp have been planned at all. It was Her Majesty's Government rewriting its March budget as a panic measure, with no real idea where the money is to come from, simply in order to save the Prime Minister's political skin.

I do not think this will work. The British people have never been impressed by a Prime Minister who has lost control - and Gordon Brown now has about as much control of his own destiny as a cork adrift on an angry sea. Still I shouldn't complain. I'm £120 better off tonight than I expected t be this morning, as well as the extra that's to come on my winter fuel allowance (unless he's changed his mind about that). But there is a problem, and its the usual one that appears after going on a spending spree with the plastic - there will be bills to pay tomorrow.

8 comments:

Dr. Christopher Wood said...

David Litterick of the Telegraph newspaper has an article about Gordon Brown/Darling being on course to break Brown's "golden rule" on public borrowing not exceeding 40% of GDP.

Specifically, if the government is "forced to add £2.7bn this year, the UK's debt burden could breach 40pc of gross domestic product". (Telegraph, 14th May, 2008.)

"Chickens coming home to roost?"

The sooner Gordon Brown is out of office the better. Just when are the "men in grew suits" going to knock on his door?

ROMAN JONES Esq. said...

It really does beggar belief when Brown/Darling announce that they will delay a petrol tax increase, postpone a punitive wheely bin tax and bribe us with a one-off income tax rebate, borrowed money we will have to pay back with interest. Is this really going to woo the voters? It's like saying if I stop punching you in the face, will you be my friend? I just hope the Great British Public don't fall for their false gifts!

WelshBlogIndex said...

I will be back and reviewing the blogs from Monday! Hope you will be keeping up the blogging and let me know if there are any blogs that need adding to the blog reviews!

WBI

Anonymous said...

Interesting story just about to break in Cardiff. Tories polled more votes than any other party in the capital city of Wales, Labour came second and the Liberal Democrats third. Due our crazy electoral system the capital city will be run by the third party the Liberal Democrats with help from the fourth party Plaid Cymru!

Dr. Christopher Wood said...

An> I wondered what was happening in Cardiff - it looked a bit off-kilter. My home town now has the most popular party by votes (Conservatives) sidelined. "Great democracy"! I lost count of the number of letters I had published rubbishing the Cardiff (and Wales) Lib Dem Party. Glad to hear that the Cardiff Lib-Dems came third, but very unhappy to hear that they will still be running things in my home town. The Cardiff Lib-Dems clearly don’t have the confidence of the good people of Cardiff – shameful, imho, that they will still be running things there.

Valleys Mam said...

Dont underestimate the power of saving Tax Glyn
If labour loose it will be because of the resentment of having a candidate imposed on them, and also the dirty tricks campaign they are playing with the Tory
Check out TDW's web site

Glyn Davies said...

Chris - I don't think many people believe there is much integrity in the Prime Minister's 'golden rule'.

Roman - I do not think budget decisions taken for electoral benefit ever work if the public realise that this is what they are.

WBI - I've been missing you for the last few weeks.

anon and Chris - the great PR roulette wheel spins again.

VM - I, too think it has been a big mistake for Labour to base its campaign on a personal attack on the Conservative candidate. Losing is one thing - deserving to lose is another, and Labour deserve to lose this one.

ROMAN JONES Esq. said...

Let's hope they realise it then!