What he gives with one hand.......?

Given the unalloyed enthusiasm which he engenders in some news followers, I think I’m unusual in finding Robert Peston extremely irritating. It’s something to do with the staccato emphasis, apropos of nothing, with which he imbues every report. I was therefore somewhat relieved and refreshed to hear Nick Robinson breaking the big economic story yesterday.

Robinson has discovered that, allied to an immediate cut in VAT, the government is to raise taxes at the next election, introducing a 45% band for top earners. This move will be impregnated more with symbolism and populism rather than practicality (as just as it might seem). It is likely to raise a mere £2billion, which is small change next to Gordon Brown’s planned borrowing, never mind that already incurred.

On the Today programme Robinson speculated that Labour’s main means of recouping some of its astronomical debt more likely lies in the realm of National Insurance. This of course would affect every wage earner and every business in the country. Smoke and mirrors is the phrase which springs to mind.

Comments

Timothy Belmont said…
I hear speculation that more of the "family silver" shall be sold off in order to pay for the latest governmental spending spree. The Met Office, forestry etc have been mentioned. Not happy about that at all.
Unless you really are, literally, counting your pennies (I'd concede it'd matter more to companies), a few per cent reduction in VAT won't make much difference.

Tim
24 November 2008 at 10:21
Anonymous said…
If all the public debt including PFI Pensions and contingencies is taken into account it will near £3 trillion after todays 'give away' which it seems is £100,000 for every individual who works in the UK. (See CPS for base numbers).

Yes £100,000 that is the amount that will have to be generated from taxes on behalf of every worker in the UK.

So let us estimate, if tax is 20%of pay and the average wage is £25,000 that means it would take 20years to clear the debt and then they would have to start on future expenditure. Of course not all taxes are paid by individuals so 15years may be a better estimate.

Not a pretty picture
24 November 2008 at 14:17
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