Tuesday, May 13, 2008

Is Darling's £120 bung enough?

In what is frankly outstanding news Alistair Darling the Chancellor has given all basic rate tax payers £120 per year by raising personal allowances by £600. Apparently this will not affect higher rate payers.

This does compensate all those who lost from the 10p tax issue, but it does not give all of them their maximum loss. However it does sort things out now. Where it does fall down though is compensating an a lot of people who actually gained by the abolition of the 10p tax band. Suits me though.

So is it enough?

The short answer is yes and no. If it was to buy of Labour rebels led by Frank Field then yes it appears it is. Frank Field even apologised to Gordon Brown in the house for getting personal over the weekend.

If it was in the hope of not losing Crewe and Nantwich, it has not got a hope. For a start the manner in which the concession was dragged out of the government speaks of a government that is aloof, slow and difficult. Secondly the electorate can bank this now and still give the government a good kicking. In short, the Crewe and Nantwich by election will still show a Conservative win.

The BBC has this.

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