Labour puts off the pain until after the election
Today's Pre-Budget Report (PBR) was a disgrace. It was an exercise in deferring the pain of the tough decisions which are needed until after next year's election.
Because the Labour government have failed to take those tough decisions before the election, there will be higher taxes and higher interest rates if Labour win the election.
The central measure was a tax on jobs that hits everyone earning over £20,000 – well below the median wage. That is Labour’s definition of the “well off”.
As George Osborne said, if you want to get ahead, if you want to buy your house, if you want to save for your pension, if you want to leave anything for your kids, Labour is no longer the party for you.
Labour have failed to deal with the £178bn deficit, cancelled the pre-election Comprehensive Spending Review, and instead said that a Labour victory at the election would mean:
£7.8 billion higher taxes - £370 more per family - after the election
Of this £6.5 billion - £310 more per family – is a rise in National Insurance - a tax on anyone earning over £20,000.
Labour’s planned tax on jobs is now £200 a year on someone earning £30,000 a year, or £60 on average earnings of around £23,000
Apart from those areas which are ring fenced Labour's policies mean a real terms 10% cut in all other Departments over just two years.
Other Labour tax rises include
* A £440m inheritance tax rise
* A new £440m phone tax
* £220m on workplace canteens
* a £500m pension tax rise
Yet even with all this pain they have not come anywhere near to bringing their borrowing under control, and the National Debt will now reach £1.5 Trillion within two years.
In the words of the Daily Telegraph,
"Britain will pay dearly as Labour plays politics
The pre-Budget report served an invaluable political purpose. It showed that Labour will, in attempting to save its skin, put sectional interest before the country's interest.
If further proof were needed that Labour is no longer fit to govern, yesterday's pre-Budget report supplied it."
In the words of Business:
Richard Lambert, Director-General of the CBI said that “The Chancellor has made a serious mistake imposing an extra jobs tax at a time when the economic recovery will still be fragile. Increasing the National Insurance contribution will hold back job creation and growth. He has also missed the opportunity to increase the UK’s credibility by reducing the public deficit earlier. We are no clearer today as to how the Government plans to reduce public expenditure."
David Frost of British Chambers of Commerce said that the National Insurance rise is: "Terrible news...It’s an additional cost for business when they can least afford it."
Miles Templeman, Director-Generaleneral of the Institute of Directors: "The key theme of this year's PBR is prudence postponed... A further tax on jobs at a time like this is madness."
John Wright, FSB National Chairman on the tax on jobs: "this is extremely damaging for employment in the UK."
One businessmen quoted on BBC News said that since 2002 Britain had gone from having teh best tax and regulatory regime in Europe in which to do business to number 24 in the rankings.
Because the Labour government have failed to take those tough decisions before the election, there will be higher taxes and higher interest rates if Labour win the election.
The central measure was a tax on jobs that hits everyone earning over £20,000 – well below the median wage. That is Labour’s definition of the “well off”.
As George Osborne said, if you want to get ahead, if you want to buy your house, if you want to save for your pension, if you want to leave anything for your kids, Labour is no longer the party for you.
Labour have failed to deal with the £178bn deficit, cancelled the pre-election Comprehensive Spending Review, and instead said that a Labour victory at the election would mean:
£7.8 billion higher taxes - £370 more per family - after the election
Of this £6.5 billion - £310 more per family – is a rise in National Insurance - a tax on anyone earning over £20,000.
Labour’s planned tax on jobs is now £200 a year on someone earning £30,000 a year, or £60 on average earnings of around £23,000
Apart from those areas which are ring fenced Labour's policies mean a real terms 10% cut in all other Departments over just two years.
Other Labour tax rises include
* A £440m inheritance tax rise
* A new £440m phone tax
* £220m on workplace canteens
* a £500m pension tax rise
Yet even with all this pain they have not come anywhere near to bringing their borrowing under control, and the National Debt will now reach £1.5 Trillion within two years.
In the words of the Daily Telegraph,
"Britain will pay dearly as Labour plays politics
The pre-Budget report served an invaluable political purpose. It showed that Labour will, in attempting to save its skin, put sectional interest before the country's interest.
If further proof were needed that Labour is no longer fit to govern, yesterday's pre-Budget report supplied it."
In the words of Business:
Richard Lambert, Director-General of the CBI said that “The Chancellor has made a serious mistake imposing an extra jobs tax at a time when the economic recovery will still be fragile. Increasing the National Insurance contribution will hold back job creation and growth. He has also missed the opportunity to increase the UK’s credibility by reducing the public deficit earlier. We are no clearer today as to how the Government plans to reduce public expenditure."
David Frost of British Chambers of Commerce said that the National Insurance rise is: "Terrible news...It’s an additional cost for business when they can least afford it."
Miles Templeman, Director-Generaleneral of the Institute of Directors: "The key theme of this year's PBR is prudence postponed... A further tax on jobs at a time like this is madness."
John Wright, FSB National Chairman on the tax on jobs: "this is extremely damaging for employment in the UK."
One businessmen quoted on BBC News said that since 2002 Britain had gone from having teh best tax and regulatory regime in Europe in which to do business to number 24 in the rankings.
Comments
There is an attempt to delude the public into believing that Child Benefit is going to increase, by raising it above the rate of inflation only to cut it back again later next year.
How on earth does Alistair Darling think that he helping businesses out of recession by taxing jobs?
£20,000 is not even the average annual income. Not only will this hit middle England it will hit many struggling families. It is hardly fair to freeze all public sector workers pay. Many are low paid. Surely the lowest paid could have been given some form of allowance if they earned below a set figure. Labour may be waging a class war, but it has turned on many of the people it purports to support.
People are being asked to make sacrifices, suffering the pain of tax increases without any the consolation that the debt is being reduced.
Failing confronting the problem is prolonging and worsening the debt problem. Debt along with obliteration of this countries manufacturing base has prolonged the recession. Whilst Europe, USA and Japan are coming through the tunnel, Britain risks slump. The future looks bleak.
The budget is purely political. No thought for economics has gone into it whatsoever. I cannot believe that the vast majority of Britain’s electorate will fall for this deception. George Osborne is right this is no longer the party for you.