Tag Archives: budget

Rupinder Singh

Tory “Wafflenomics” and the Expected Macroeconomic-fiscal Costs of NO DEAL

By Rupinder Singh | Wed 7th August 2019 - 12:30 pm

In my last piece, I outlined the expected consequences of a depreciating pound and that a looser fiscal response was the only feasible short-term policy response that would be available to deal with the massive macroeconomic shocks that are likely to ensue (an uncoordinated) NO DEAL Brexit.

Three and a half questions follow:

  • What is the Boris math for the litany of fiscal promises issuing since his “inauguration”?
  • Are these spending promises feasible & credible in terms of the macro-fiscal context the UK will face in a NO DEAL scenario?
  • What should our response as LibDems be to unpick if not defenestrate the Tory Wafflenomics in the run-up to October 31st? The half-question I leave for another occasion, what should be our policy response to deal with the after-effects from November 1 should a No Deal actually take place.

Math on Boris’ Fiscal Promises and projected values

(…mind you we’re just a few weeks in..)

  • 20,000 new police officers: £1bn (one-off)
  • Rise in 40% tax threshold from £50k to £80k: £10bn
  • National Insurance contributions at higher trigger: £11bn
  • Schools: reversing cuts in Education envelope: £5bn
  • Health: Unclear but: 20 New hospitals £1.8bn + wooing female voters £2bn + ??promised £350m per week: £3.8bn – £20bn
  • social care: £10bn
  • new railway Manchester – Leeds: £2.1 – £3.6bn depending on sources, assume £3bn
  • Help to farmers: £0.5bn (but is this just for the Welsh lamb?)
  • No-Deal Planning: £2.1bn (let’s assume £100m no-deal advertising part of this budget line)
  • Unbudgeted thus far: other sectors e.g. Fisheries, medicines, food shortages, …you get the picture…cost of increased policing…

Totting these figures gives £42bn excluding the £350m/week which alone would imply a further £18bn…and per year if the red bus promise is to be kept strictly. Large numbers in absolute terms (a billion has nine zeros) but not in relative terms as the UK economy is £2 trn in value (a trillion has 12 zeros), meaning that £42bn equates to around 2% of GDP or 5% of the current budget and therefore chunky but not a huge fiscal expansion…of itself..

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Caron Lindsay

Willie Rennie pulls Lib Dems out of Scottish budget negotiations

By Caron Lindsay | Sun 9th December 2018 - 11:26 am

While all eyes are on a key vote on a proposal put forward by a minority government at Westminster this week, another political drama looms. On Wednesday  the Finance Minister of a minority government at Holyrood will present his budget.

Derek Mackay is going to have a hard time getting his proposals through. All Willie Rennie asked for as a preoondition to negotiaions for Lib Dem support was that they just drop the idea of an independence referendum in this Parliament, fulfilling a key part of our manifesto. It chimes with what we are hearing consistently on doorsteps – that people don’t want to go through 2014 again. They want to concentrate on getting rid of Brexit.

The arguments that all parties apart from the Conservatives, have united behind in the Scottish Parliament against Brexit apply equally to breaking up the UK. While you don’t expect the SNP ever to give up campaigning for independence, keeping it off the agenda for the time being is as sensible for them as it is good for the country.

The SNP lost 21 seats in the 2017 General Election as Scottish people reacted with horror to the prospect, floated by Nicola Sturgeon, of another poll. All tests of opinion so far suggest that they would lose another referendum, which is why they won’t call one. The problem is that if they explicitly say they’ll delay, their own people will kick off.

So they wouldn’t agree Willie’s pre-condition. And so Willie has withdrawn the Lib Dems from the negotiations.

From the BBC:

Scottish Lib Dem leader Willie Rennie said he had met Mr Mackay and Public Finance Minister Kate Forbes on two occasions “to explore what could be done” with the budget.

Mr Rennie said his party had been willing to “step in to help address the problems that have been mounting since the SNP came to power 11 years ago”.

This included investment in education and mental health services, an improved deal for councils and action to help tackle staffing shortages in hospitals and schools.

But he said the talks ended when the SNP politicians “could not agree to even a short cessation in their independence campaign”.

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Caron Lindsay

LibLink: Vince Cable: Brexit’s real life impacts are already hitting the UK hard

By Caron Lindsay | Sun 4th November 2018 - 10:28 am

Vince was up in Edinburgh this week (not, contrary to some reports, flying business class and staying in luxury). After an early start to do budget media stuff, he voted on the budget at 6:30 or so and caught a flight an hour later. He and Christine Jardine got to the Edinburgh West dinner at about 9:45 and both were in sparkling form.

In fact, I think that the speech Vince gave was better than his Conference speech. There was none of the schoolboy, carry-on style humour, and just a very simple, effective liberal message. He talked about needing to be honest with people about the future funding of public services – we will need to pay more tax. He talked about Brexit and our desire to stop it too, but he had plenty of vision about helping those who need it most – putting more money into Universal Credit and stopping its rollout until the problems with it are sorted out. He talked of his surprise that Labour had abstained on he Tory tax cut for better off people as he led our MPs to oppose it.

Timed to coincide with his visit was an op-ed in the Scotsman which he used to describe the detrimental impact that Brexit is already having on us:

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Caron Lindsay

Unlike Labour, Lib Dem MPs will oppose Budget tax cut for better off

By Caron Lindsay | Thu 1st November 2018 - 10:59 am

As I said on Monday, the bit that annoyed me most about the Budget was that better off people were getting  a tax cut when the benefit freeze continued and only a third of what was needed was put back into Universal Credit. Add to that the people who have their much-needed disability benefits cut back for the most arbitrary of reasons after deeply flawed assessments and you can maybe see why I am so fuming.

Astonishingly, Labour is backing the Tory plans – although some may revolt.

So it’s good to see that Vince Cable will lead Liberal Democrats in voting against the tax cuts and asking for the £1.3 billion to be spent on reversing the cuts to social security. The press release actually says welfare, but I really wish they wouldn’t call it that. Social security is important for everyone. There needs to be a safety net to help those in the most difficult situations at any time. It’s what a civilised society does. It should be enabling and freely given, not grudgingly given with unreasonable expectations written into its heart as it is at the moment.

Vince said:

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Caron Lindsay

What do you want to see in the Budget?

By Caron Lindsay | Sun 28th October 2018 - 8:59 am

I learned pretty soon after Margaret Thatcher came to power in 1979 that Conservative budgets were things to be feared. Tax cuts for the rich paid for by paring public services back to the bone was the order of the day.  I’ve never yet met a Tory budget that I liked. There were some mitigating factors during the coalition years, but we only managed to stop the cruellest of Tory policies. Some of the ones we let through, like the Bedroom Tax, should never have seen the light of day.

My expectations of Philip Hammond tomorrow are therefore pretty low. I’ve …

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Caron Lindsay

Budget drama in Scotland – Willie Rennie wants “an education focus as never before”

By Caron Lindsay | Sun 10th December 2017 - 8:47 am

The Scottish Government unveils its budget this Thursday. The SNP mislaid their majority in Holyrood in the elections last year so there could be a bit of drama between now and February when the Finance Bill is finalised.

The last time a Budget fell was in 2009 when the Greens, to everyone’s surprise, voted against. A couple of weeks later, to nobody’s surprise, they voted for it but hadn’t extracted anything of consequence from the Government.

When John Swinney was Finance Minister, he used to engage pretty well with the other parties. Willie Rennie was able to get things like free school meals, tens of thousands of college places and nursery education for 2 years olds put in. However, now that we have started beating the SNP pretty comprehensively, the atmosphere has turned a bit nasty.

New Finance Minister Derek Mackay is playing games with crucial inter-island ferry services in Orkney and Shetland, both represented by Liberal Democrat MSPs. Various SNP Ministers have been giving the very strong impression that they would help the Islands Councils with the cost of these ferries without which some remote communities simply could not survive.

Now, however, they are inferring that it’ll only go in the Budget if the Lib Dems promise to vote for it. That sort of posturing doesn’t play well in those communities. The issue was debated in Parliament last week during a Lib Dem opposition day and the Transport Minister Humza Yousaf made a pretty blatant threat.

There is a window of opportunity for Liberal Democrat members of the Scottish Parliament. Either they can engage positively in the budget, have a discussion about this important issue and side with their constituents, or they can play party politics.

I mean, we’d brought the issue to the floor of the Parliament, which was discussing it at that time and made its view plain by passing the Lib Dem motion. If SNP ministers fail to honour Parliament’s wishes, that is a pretty serious thing. 

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Caron Lindsay

Lib Dems respond to the budget: We would kickstart the economy back to growth and exit from Brexit

By Caron Lindsay | Wed 22nd November 2017 - 8:30 pm

So, we’ve seen the extent of Phil’s spreadsheet and it didn’t make pretty reading. An economy on the slide, a disastrous Brexit on the horizon, growth forecasts crumbling – and that’s before we even get to the awful bit. Hammond’s response to all of this seemed so, well, inadequate. It’s like your town is flooding before your eyes and someone goes to Boots and buys a bath sponge to mop up the damage.

If this country is going to survive the oncoming storm it needed massive investment – a social housebuilding programme to rival that in the post war years, investment in infrastructure, a boost to the NHS. What do we get instead? A bit of tinkering and a few little traps set for the SNP to try to bolster the Tories in Scotland.

Vince Cable told Adam Boulton that we’re in a mess, the slump in economic growth costs each of us £700 and that the Chancellor has put more money aside in the event of a horrendous brexit no deal crash than he has invested in the NHS. Watch him here.

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Caron Lindsay

Vince: Only Lib Dems offer strategy for growth and prosperity

By Caron Lindsay | Fri 10th November 2017 - 11:55 am

Earlier, we brought you a flavour of Vince’s big pre-Budget speech.  Here is the speech in full:

As Leader of the Liberal Democrats, it is one of my responsibilities to give a serious Lib Dem analysis of the economics around the Budget, and to present an alternative.

I have recently been returned to Parliament from exile.

One of my regrets, however, is that the previous competition between the parties on economic competence no longer exists.

The likes of Gordon Brown, George Osborne, Ed Balls and Oliver Letwin were all serious players and thinkers even if I often disagreed with them.

Now, the economy – pivotal still to people’s lives – has been relegated to the margins of political debate.

The June election produced minimal discussion of economic policy.

The Conservatives didn’t produce any economic numbers in their manifesto.

Labour did, but as the IFS caustically pointed out at the time, there was a strong element of fantasy.

My Party did much better than our rivals at the hands of the IFS and serious commentators at the FT and The Economist but few noticed. And, now, economic debate is drowned out by the politics of Brexit and an unstable government.

Yet this is an unusually important and difficult budget.

The Chancellor has foresworn the use of a second budget, traditionally used to correct the mistakes in the first.

And the potential for a massive, if unquantifiable, economic shock from an unsatisfactory deal – or, even, ‘no deal’ is palpable.

Brexit hangs over the forecasts.

The environment of radical uncertainty is already spooking business investment and depressing growth, including the growth in government revenue.

I want, then, to set out some analysis of where we are and some ideas for where the Liberal Democrats think Britain could and should go.

Our focus is on freeing up capital spending to build the homes and infrastructure the country needs, on reviving the NHS with a targeted injection of cash, and on giving a leg up to young people with a learning account as they begin their working lives.

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Caron Lindsay

Rennie says SNP Government must put more into mental health, the police and helping disadvantaged kids in schools

By Caron Lindsay | Thu 19th January 2017 - 12:58 pm

It’s time for the Scottish Parliament to debate the Government’s budget plans for the coming year. It’s particularly interesting this year as the SNP no longer has a majority and must secure the backing, or at least the abstention, of others in order for the budget to pass.

Willie Rennie has written to Derek Mackay, the SNP’s Finance Minister, to set out the changes that the Liberal Democrats wish to see before they could consider supporting the budget.

It will come as no surprise to anyone that he is sticking to the priorities we outlined in our manifesto for the Scottish elections last year – more money for disadvantaged kids in schools as we implemented successfully south of the border, an expansion of mental health services, particularly for young people, and more funding for the Police who are struggling to cope with the SNP’s disastrous centralisation.

It’s quite important that we have all this in mind in everything that we do during this Parliament. We need to think about what we want to achieve and what we will have to say to voters in 2021 about what we have fought for and where we are not prepared to settle for tepid, unambitious half-measures. In the last Parliament, where the SNP had a majority, we still made issues like early years education, colleges, the Police, civil liberties and mental health our own and won significant concessions from the SNP in budget discussions. Now that there is no majority, we need to push for more.

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Alex Hegenbarth

The Greatest Show On Earth

By Alex Hegenbarth | Mon 18th January 2016 - 6:25 pm

 

From the great theatrical showman in Las Vegas to the street-hustlers on trestle tables asking tourists to watch the cups; misdirection, the foremost requirement of magic, is a deception in which the attention of an audience is focused on one thing in order to distract its attention from another.

No matter in what forum they perform, from street magicians to TV illusionists, magicians have the ability to use their skills to create something out of nothing, of reordering the universe to defy the rules of logic before our very eyes – and who knew that the Conservative government was creating the greatest show on earth.

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Newsmoggie

Independent: Liberal Democrats’ “major and under-rated contribution” to Budget success

By Newsmoggie | Sat 22nd March 2014 - 9:20 am

Budget 2010 photocallYesterday’s Independent editorial had some very complimentary things to say about the Liberal Democrats’ influence on the Budget:

It is widely said that George Osborne had a decent Budget this week, aided in no small part by Ed Miliband’s curiously weak response. But the Liberal Democrats, as has frequently been the case during this parliament, made a major and underrated contribution to its success.

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Alan Reid MP

Alan Reid MP writes… Time for the Chancellor to be fair on Scotch

By Alan Reid MP | Wed 12th March 2014 - 11:48 am

WhiskyAs the local MP for Islay, I see frequently just how important whisky is to the island. Eight distilleries (and another planned), and the world famous brands they produce, help to drive the local economy and attract tourists from around the world to a remote corner of the Scottish west coast.

What is less easy to understand is why the UK continues to penalise the industry in its home market. Today, nearly 80% of an average priced bottle of Scotch Whisky – four pounds in every five you spend on a bottle – is accounted for by tax, making whisky one of the UK’s highest taxed consumer products.

Excise duty on whisky has increased by 44% since the introduction of an annual 2% above inflation duty escalator in 2008. The result has been predictable and damaging. The UK market for Scotch is now 12% lower than it was when the escalator was introduced, a loss of 6,500 bottles from the market every day.

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Caron Lindsay

Budget 2013…..Live Blog

By Caron Lindsay | Wed 20th March 2013 - 12:34 pm

George Osborne is about to get to his feet to deliver his Budget.

IF campaign Budget Dy

In Parliament Square this morning, Enough Food IF campaigners gathered to remind him to stick to the 0.7% overseas aid pledge.

Join us for our budget live blog.

“It was of course inevitable that debit reduction would impact on growth, but what the independent OBR figures show quite clearly is that other factors – namely the weak international picture and higher-than-expected inflation – have had a much greater impact on economic growth. Given the risks of not …

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Simon McGrath

Opinion: Liberal Reform urge MEPs to oppose a secret vote on the EU Budget

By Simon McGrath | Tue 12th February 2013 - 3:50 pm

European Parliament chamber, StrasbourgIt probably came as a  surprise to most Lib Dems to hear  that it is possible to have a secret vote in the European Parliament at all, let alone when as few as 20% of MEPs call for one. Press reports that some members want a secret vote so they can safely vote against the EU Budget are shocking, because knowing how elected representatives vote is surely the most basic piece of information required to hold them accountable.

If the EU Budget is rejected, after a secret vote, there is not the slightest doubt that it will be seized upon by those in the UK who want us to leave to leave the EU.  Not only should our own MEPs, but also ALDE as a whole, should be opposed to a secret vote in this case, and they should act to change the Parliament’s rules to make secret votes impossible.

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Kirsty Williams AM

Kirsty Williams AM writes: Welsh Liberal Democrats will fight for more for disadvantaged children

By Kirsty Williams AM | Wed 3rd October 2012 - 1:36 pm

Yesterday the Welsh Labour Government submitted its £15 billion draft budget which reveals its spending plans for the next year.

In its current form, the Welsh Liberal Democrats cannot support this budget as we don’t believe it goes far enough to tackle the problem of making sure that children from deprived backgrounds get the fair start in life they deserve.

Last year, the Welsh Liberal Democrats vastly improved the Welsh Government’s budget by agreeing to support it in return for the introduction of a Welsh Pupil Premium. Despite failing standards in our schools and an ever growing spending gap per pupil when compared …

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George Kendall

Labour leaning think-tank IPPR backs Osborne on ‘granny tax’

By George Kendall | Sun 25th March 2012 - 12:55 pm

George Osborne has received support from an unexpected source: the Labour leaning think tank, the IPPR.

In an article entitled “Why Osborne’s ‘granny tax’ makes sense“, Senior Research Fellow at the IPPR, Kayte Lawton says:

It is right for older people to contribute to deficit reduction…

Older people have been relatively protected from the spending cuts imposed by the coalition. The young have taken the brunt of the pain… Asking older people to contribute to tackling the deficit and shoring up the country’s tax base in the long-term is not unreasonable…

Osborne’s pleas of simplification have not played well, but he is right that age-related allowances add

…

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Mary Reid

LibLink: Redressing the balance between the generations

By Mary Reid | Fri 23rd March 2012 - 4:43 pm

Chris Nicholson, Director of CentreForum, has posted his take on the Budget on Total Politics.  He concludes:

It is often said that the best Budgets are usually those that get the immediate negative headlines. While the press has focused on the alleged “unfairness” of the Budget, history is likely to be rather kinder in suggesting that the budget has been much fairer than it at first sight appeared.

You can read the reasons for his optimism here.

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Mark Pack

How do you keep a secret? Or why Chris Leslie shouldn’t become an undercover detective

By Mark Pack | Fri 23rd March 2012 - 2:55 pm

Imagine you have something you want to keep secret. You’re going to do something, and you don’t want anyone to know.

Chances are, you’ll take a look around and make sure there aren’t any  TV cameras pointed at you and rolling away live coverage to several channels. Perhaps the memory of politicians running into problems with comments caught on microphones come to mind, and you’ll take a good look around to ensure there aren’t any in the same room as you that might be used by a national radio station or two.

Then you’ll remember to check you’re alone. Don’t want to …

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Mary Reid

LibLink: David Laws on the Budget in the Telegraph

By Mary Reid | Fri 23rd March 2012 - 10:49 am

David Laws penned his thoughts about the Budget in the Telegraph yesterday, under the headline “Budget 2012: Not so much a gamble, more a grand strategy”

He writes:

Despite its scratchy origins, this was a strong Conservative-Lib Dem Budget, reminiscent of the earliest days of the Coalition at its best. It was radical and combined both enterprise and fairness. It did not duck difficult decisions or end up with lowest common denominator compromises. At times, the run-up may have looked like Coalition politics at their worst. I would argue that what resulted was Coalition policy-making at its best.

The Liberal Democrats challenged the

…

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Caron Lindsay

What Liberal Democrat Bloggers are saying about the Budget – Part 2

By Caron Lindsay | Thu 22nd March 2012 - 7:55 pm

The Liberal Democrat blogosphere is continuing to talk about the Budget, so here are some of the latest offerings.

Sandy Walkington thinks that the Budget is a dish best observed cold.

I tend to aim off from all instant, hyperbolic reactions to the Budget.  When I worked as a press officer in the oil industry, Budget Day was a time for synthetic outrage at the latest iniquity heaped on the long suffering motorist or on the plucky explorers of the North Sea.  And then the sun continued to rise and set.

In the current global economic circumstances which only compound the reckless public

…

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Sara Bedford

Labour’s hypocrisy on the ‘Granny Tax’

By Sara Bedford | Thu 22nd March 2012 - 3:09 pm

The response from Labour and the tabloids to yesterday’s Budget have majored on the patronisingly termed ‘Granny Tax’.

However Ed Balls and colleagues must be delighted that so far everyone seems to have missed that the last Government froze the Age Allowance between 2009-11 – or as Shadow Chief Secretary to the Treasury Rachel Reeves would term it Labour imposed ‘an enormous stealth tax for older people’.

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Nick T

Budget 2012: A strategic and substantive victory for the Lib Dems

By Nick T | Thu 22nd March 2012 - 2:56 pm

The big substantive Liberal Democrat wins that yesterday’s budget contained will be familiar to regular readers by now. However, I think it’s worth highlighting once again just how big a deal the increase in the personal allowance announced yesterday is. A rise of £1100 is unprecedented, and means that those earning the minimum wage and working full time will have seen their income tax bills halved because of the Liberal Democrats.

Before Nick Clegg intervened publicly back in February to call for the threshold to be raised faster than previously anticipated, the working assumption was that it would be raised by …

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Caron Lindsay

My Bob and the Granny Tax

By Caron Lindsay | Thu 22nd March 2012 - 10:57 am

My dear husband is not a Granny. And he’d better not be a Grandad for a very long time to come, given that our daughter is not yet a teenager. He is of an age to be affected by the so called “Granny Tax” eventually.

Now, you might, if you wish, feel a bit of sympathy for poor Bob. It must feel sometimes like George Osborne has pulled his name out of a hat and decided just to chip away at his income.

First he decided that in the year Bob reaches 65, the State Pension age will go up to 66 …

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Mark Pack

“Budget 2012: new tycoon tax in victory for Nick Clegg”

By Mark Pack | Thu 22nd March 2012 - 9:11 am

“Budget 2012: new tycoon tax in victory for Nick Clegg” – so reports the Daily Telegraph:

In a significant victory for the Liberal Democrats, the Chancellor effectively introduced a 25 per cent minimum rate of tax in the Budget.

Under the changes, he will limit how much people offset their tax bills by investing in businesses or donating to charity.

Anyone seeking to claim more than £50,000 of tax relief in any one year will have a cap set at 25 per cent of their income from 2013.

Accountants said this means the wealthiest will have to pay at least 25 per cent of their income in tax. Although the highest rate of income tax is 50 per cent, reducing to 45 per cent next year, some wealthy people reduce their bills to almost nothing using different reliefs available from HM Revenue and Customs.

The introduction of this major change to the tax system is one of the main reasons why, as I wrote yesterday, if you are on more than £150,000, you will pay an extra £1,300 a year in tax on average as a result of this Budget.

As for what Labour would do on the 50p rate they seem to be flip and flopping with each new interview – sometimes saying they would reintroduce it if they had the chance tomorrow/next week, and sometimes not.

For more on the Budget see a couple of the media interviews I did yesterday – first on the News Channel and then on Radio 4:

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Caron Lindsay

What Lib Dem bloggers are saying about the Budget

By Caron Lindsay | Wed 21st March 2012 - 9:42 pm

I thought I’d do a quick roundup of what Liberal Democrat bloggers have been saying about today’s Budget. I suspect there will be more tomorrow.

Stephen Williams MP was probably always going to be supportive but he has an extra reason – and it’s all to do with Wallace and Gromit:

The Budget also had some good news for Bristol.  You wouldn’t expect Wallace and Gromit to feature in a budget.  But the Chancellor mentioned them in his speech as he is proposing an extension of film tax credits to made for tv films.  I met with Aardman Animations a few

…

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Ben Norman

The Independent View: Budget lifts a million people out of Income Tax

By Ben Norman | Wed 21st March 2012 - 7:33 pm

The news that the UK’s February borrowing figures were the worst on record did not exactly provide the Budget mood music the Chancellor was hoping for. Then again, the stark reminder that the UK is living well beyond its means serves to buttress his arguments about the need to control spending. There is no money to spend, and even with the current deficit-cutting fervour from Number 11 the UK remains at the whim of global bond markets.

So how did George do? The stamp-duty increase on homes worth more than £2 million is eminently sensible, but must be accompanied by the …

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Danny Alexander MP

Danny Alexander MP writes… Liberal Democrat budget victory for “further faster” tax campaign

By Danny Alexander MP | Wed 21st March 2012 - 1:35 pm

Over 20 million working people will be better off next year after Liberal Democrats in the Coalition Government delivered the biggest ever increase in the income tax personal allowance in the Budget.

The increase of £1,100 is worth £220 to 21 million working people – taking the total income tax cut for working people delivered over 3 years by the coalition to nearly £550 a year. Two million people will pay no income tax at all. By going ‘further and faster’ as Nick Clegg promised, we’re getting real help to millions of hard-pressed people at a time when they need …

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Michael Moore

Michael Moore MP’s Westminster Notes

By Michael Moore | Wed 21st March 2012 - 10:55 am

Secretary of State for Scotland Michael Moore MP writes a weekly column for newspapers in his constituency. Here’s the latest edition.

The Economy

 The economy remains the most important concern for people in my constituency and last week’s employment figures were a reminder of the challenging economic climate and that getting people into work is the UK Government’s first priority for Scotland.

We are doing all we can to get people working by laying the foundations for more sustainable growth and creating the conditions for businesses to invest in good quality jobs. By reducing corporation tax and making tough decisions on public spending …

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NewsHound

‘Quad’ finalises Budget details

By NewsHound | Mon 19th March 2012 - 6:20 pm

PoliticsHome reports:

The Prime Minister and Chancellor have held final meetings with Deputy Prime Minister Nick Clegg and Treasury Chief Secretary Danny Alexander to finalise the Budget.

Footage of the meeting of the ‘quad’ was released this afternoon amid reports that the Chancellor will scrap the 50p top rate of tax from next year and replace it with a new 45p rate.

George Osborne hopes the new rate, which will take effect from April 2013, will raise more money and encourage

…

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NewsHound

LibLink: Mark Pack – I was wrong about the Budget

By NewsHound | Mon 19th March 2012 - 5:50 pm

Writing over on his work blog, Lib Dem Voice’s Mark Pack withdraws one Budget prediction and offers us three others instead:

Cunning negotiating strategy or basic mistake? Whatever the view you have of the tax motion at Liberal Democrat conference and Stephen Williams’s speech moving it, my interpretation of it was wrong.

Far from signalling the determination of the party’s leadership to see the 50p tax rate remain, it was in fact a sideshow and the rate will go. A kind interpretation is that standing by the 50p rate so publicly was part of a negotiating strategy to extract greater concessions

…

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