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Londoners paying price of PM's manic meddling, says Boris
Jonathan Prynn and Pippa Crerar25 Nov 2008
BORIS Johnson unleashed an unprecedented personal attack on Gordon Brown today as it emerged London was the big loser of the mini-budget.
The Mayor described the Prime Minister as a "manic meddler" who was desperately trying to boost the economy to improve his electoral fortunes.
He accused Mr Brown of treating Londoners like "a bunch of overweight and exhausted laboratory rats" who he hoped would do his bidding.
Mr Johnson's attack came as it emerged the capital would bear the brunt of the punitive measures in yesterday's pre-Budget report.
While the capital is home to 12 per cent of the UK population, the latest figures show it is has 25 per cent of the people earning over £100,000 a year, who will be most affected by Chancellor Alistair Darling's plans to tax the rich. At the same time London, with its comparatively youthful population, will benefit less than other parts of the country from extra money put into state pensions.
The Mayor criticised Mr Brown for gambling with the financial fortunes of the capital. "He is like some sherry-crazed old dowager who has lost the family silver at roulette, and who now decides to double up by betting the house as well," he wrote in his Daily Telegraph column.
"He is like a drunk who has woken to the most appalling hangover, and who reaches for the whisky bottle to help him dull the pain."
Mr Johnson said the Government's plans to increase National Insurance contributions would hit employees as well as businesses.
He asked: "Might it not have been better, if you were going to splurge £20billion in tax cuts, to spend it on cutting National Insurance and helping business to keep people in work?"
The Mayor repeated his plea for sustained investment in big infrastructure projects such as Crossrail, the Tube upgrade, and the Olympics, to help London through the worst of the recession. He said: "When credit has dried up, when confidence has collapsed, it is the duty of the Government to keep the economy moving with sensible and affordable investment.
"That is why it is vital to push on with the big infrastructure projects in London that will not only deliver jobs and growth in the short term, but which will help to make the capital and the UK economy better placed, long term, to compete. The tragedy of our current predicament, and the tragedy of Gordon Brown, is that by his previous profligacy he has left himself so little room for manoeuvre."
Mr Johnson's director of strategy, Anthony Browne, said the mini-budget had "put its gun sights" directly on the capital. He told the Standard: "Alistair Darling has done far more to redistribute wealth here than anywhere else... It is almost as though the budget is the revenge of England on the affluent of Kensington and Chelsea." But Mr Browne admitted the Chancellor's plans would help the poorest people in London, which has four of the 10 most deprived boroughs in the country. Those on low incomes would benefit from increases in tax credits, while the child poverty rate - the highest in the country - would be reduced by child benefit increases.
Reader views (58)
St. London ... Its 1976 and HAROLD WILSON is prime minister (and England win the world cup by playing in RED!) while Dennis Healey is Chancellor.
Labours big mistake was not making Dennis PM as he would have been better at stopping Thatcher sow the seeds which are now the property crisis we now have!
To those who complain about people who are anti-Boris well the best enemy he has is himself...He should get on with the job of running London as mayor and leave opposition to the government to his old school mates in Parliament. (Unless he has no confidence in them?)
- Melvyn Windebank, Canvey Island, Essex, 27/11/2008 01:27
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Well done Boris. The sooner we are rid of the morons in charge the better.
- Richard, Colchester, 26/11/2008 10:28
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This debate has nothing to do with the Mini Budget
I get the impression that if Boris said the moon was made of rock, the anti Boris brigade would say it was made of cheese.
On the other hand if he said it was made of cheese.....
- Chris, London, 26/11/2008 08:07
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Boris Johnson is talking about him self being over weight .
the Tories haven't a clue how to deal with the credit crunch, and that they would probably with their inaction make the situation much worse.
- Andy P, London, 25/11/2008 23:43
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Its about time Boris came clean about his plans if he was in Government the last time his lot were in it was a case of the market coreecting itself - help the rich seems to be what he is saying and Oh by the way could you please pay for my new Routemaster buses even though I have lots of new buses already -
- Kevin, Croydon, 25/11/2008 22:59
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Its no wonder Boris is complaining about the higher taxes for the rich with an income in excess of £100k and mayor and £200 K as a journalist BOGO will have a lot to pay along with his old schoolmates in parliament who also have 2nd or even 3rd jobs.
Just think had the chancellor announced extra funding for transport schemes yesterday Boris has not only left the queue in the shop but torn up his shopping list!!
Cities like Manchester, Leeds and Birmingham have plans for tram and Light Rail schemes they have waited years to get while thanks to Boris London now has nothing in the DFT in-tray.
As for making comments about the prime minister it goes to show how insolent these public school boys are to the person who like him or not is the PRIME MINISTER!!
(NB. To those who go on about Gordon Brown not being elected he has the same right to be PM as John Major and many other tory PM's who became Prime Minister during a period of power, something that occurred several times in the 1950's.)
I hope Boris has checked he has'nt cancelled any un-funded tube upgrades that are required to run the new trains that have been ordered?
- Melvyn Windebank, Canvey Island, Essex, 25/11/2008 22:42
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Boris is right. He has to stand up to a communist Nu Labor group who is un-elected (Boris won a popular election!) who have delivered this country and its great cities the biggest deficit of developed countries, bigger than the USA, with an economy much smaller. Most of the taxes come from London: we deserve not to be let down!
- Jacqueline, Hampstead, London, 25/11/2008 22:33
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Does anyone take Mayor Boris seriously? He is far better at cycling on pavements and running red lights, if you ask me. He would have made a great Minister of Transport !
- Keith Price, Luton, England, 25/11/2008 22:11
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"We are already some of the highest taxed people in the world.
Damian, London"
Incorrect. We have one of the lowest top rates of tax in Europe.
"If you managed to set up a business and earn 150k i think you'd be pretty annoyed when almost half of it was taken away from you.
Daveb, london"
But almost half of it would not be taken away. The 45% would only apply to the money you earn ABOVE £150,000, not all of it.
"The Mayor repeated his plea for sustained investment in big infrastructure projects"
Then why did he essentially scrap most of them the other week?!
- Kieran, London, UK, 25/11/2008 19:37
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Boris Johnson is a clown how can he possibly comment on economic matters when the man decides to cut all the projects in the previous comments what a buffoon the man is like the buffoons who voted an idiot as mayor
- Tony, Bromley England, 25/11/2008 19:27
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Damien Vaugh - are yor working for the Labour Press Office?
- Dan, Manchester, 25/11/2008 18:56
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Keep up the good work Boris. You are upsetting all the right people and pinning the tail on the donkey Brown where it belongs.
- James Elliott, Eastbourne UK, 25/11/2008 18:04
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Let us compare his statement today "The Mayor repeated his plea for sustained investment in big infrastructure projects such as Crossrail, the Tube upgrade, and the Olympics, to help London through the worst of the recession. He said: "When credit has dried up, when confidence has collapsed, it is the duty of the Government to keep the economy moving with sensible and affordable investment"
....with his statement here on 6th November ;
"Announcing his Transport for London business policy, Mr Johnson revealed further savings of £2.4billion in job cuts and efficiencies over the next 10 years.
Projects which will be scrapped include:
●Proposals for a £500million tram along Oxford Street.
●The Thames Gateway Bridge, running from Newham to Greenwich, costing more than £500million.
●The Cross River tram intended to ease pressure on the Northern line, costing £1.3billion.
●An extension of the DLR to Dagenham Docks, costing £750million.
●The Greenwich Waterfront Transit, a bus route linking the O2 Arena with bus and Tube stops and East London transit, costing £370million.
- Damien Vaugh, Greenwich, London., 25/11/2008 16:31
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Sadly, Mark of London, the idiots were those who deregulated the City of London, aka Thatcher and Lawson, who assured us all that 'You can't buck the markets'. This let the spivs and conmen in who were intent on Big Bonuses regardless of the risks they were taking with other people's money.
- Hugh Leader, Ealing UK, 25/11/2008 16:23
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To Lindsay in London, let me tell you a little story.
It’s 1976 and the Labour Prime Minister, Denis Healey has seen a 25% drop in the pound in a year. He then seeks $4bn from the IMF in return for an agreement to cut spending and restrain the growth of credit.
Shortly thereafter, James Callaghan is installed as PM and prior to his defeat to Thatcher in 1979 makes the following statement:
"We used to think that you could just spend your way out of a recession. I tell you, in all candour, that that option no longer exists."
So, tell me, why has Gordon Brown decided that he knows better than history and that his plan can resolve all of our woes?
I feel like I am stood at an airport with a bunch of people, all of us staring at a plane with one wing missing, and only Boris has the balls to stand up and say, "I’m not getting on that!"
- St, London, 25/11/2008 16:12
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Something which effects every single one of us is oil. Therefore Darling and Brown should have reduced the amount of tax the Government takes on this. Oil is down to less than $50 a barrel but the pumps don't reflect it - its still too high. If the Government reduced the amount of tax they take, it would help not only the motorist but all businesses including public travel. But no Darling and Brown have chosen their 'pick and mix' and all us will be paying for years. New Labour inherited a sound economy - does anyone really know where's it gone over the past 12 years?
- Sharon, London UK, 25/11/2008 16:11
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In both the Thatcher and Blair governments the inequality between the rich and the rest of the population has grown using monetary policy. By cutting VAT (a regressive tax - ie a poor person pays a higher proportion of his/her income on the same basket of goods as a rich person) and announcing a higher income tax rate (a progressive tax) in the future for those on very high incomes (over 4 times the national average) will reduce the inequality. Whilst we will all have to help repay the current necessary borrowing, given that a large proportion of the current problem has been caused by rich banks/bankers over lending and gambling on our pension funds it is only right that those on the top incomes should have to cover the cost of the problems that have been created amongst the working and middle classes.
- Andy, London, 25/11/2008 15:59
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At least Gordon Brown will wake up sober. Johnson will always be a clown.
- Blue Baby, London, 25/11/2008 15:35
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Big Andy, Regarding the long term unemployed? gosh haven't you noticed that it pays better to sit at home than work, I mean you get free rent, council tax, money to live on and if you have disfunctional kids they get holidays...does that explain it?....no not one of them as I do work and support my 2 kids...
- Sarah, London, 25/11/2008 14:46
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To the idiots commenting on this. Its not the banks who you should be blaming. Take some personal responsibility for borrowing too much. If you were too stupid to see that house prices were too high at least don't blame others when they start collapsing!
- Mark, London, 25/11/2008 14:39
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St, London and other ranters - I assume you're all too young to remember when interest rates were 15% (not so very long ago, under the Tories - my husband's parents lost their house as a consequence along with thousands of other unfortunate people) and Black Wednesday, when Tory economic policies led to disaster and humiliation for Britain and the City of London on the international stage. Ignore the ill-informed braying of George Osborne; he was probably still at school during the last recession and lacks the maturity or experience to bring anything helpful to the table. People earning above £150,000 (probably most of Boris's Eton cronies) can easily afford to pay more tax, and there are probably more of them in London than anywhere else in the UK, so let's grow up and make them.
- Lindsay, london, 25/11/2008 14:19
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Typical Tory nonsense....kicking out for cheap political points when the country is about to go down the pan - if you think it is bad now, wait till after christmas when the spending stops altogether. The redundancies will be enormous...Boris, get on side you blithering, bunteresque buffoon.
- Chris W, london, 25/11/2008 14:18
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Bye bye Bhalla. Be glad to see the back of selfish people who have no sense of responsibility to others, beyond family, who take it all and give nothing back.
I'm sure Mother India will welcome you back with open arms, a wealthy NRI returning to the home country. Just think of all those corrupt policemen, dishonest judges and fast thinking goondas who will be looking to relieve you of your heavy burden. Its a win/win situation.
Yup, its better that you don't consider the opportunities this country provides, better to dwell on how hard life is in this country -huh?.
- Shiv, London, 25/11/2008 14:16
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Thank goodness everyone treats Boris' statements with a pinch of salt. He is the Billy Bunter of out times.
- Steve, London, 25/11/2008 13:58
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I fail to see anything in this report as to what Boris would do if he were in the same position?
- John, London, 25/11/2008 13:44
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This person Boris Johnson, must be seen in action on The London Assembly to understand what drivel he speaks.
A man that uhms and ahs through a simple sentance, also seems to have had one over the eight.
With the horrendous situation in London of knife crime, when questioned by Barnbrook BNP, his words made out that the knife was racist, it was utter drivel.
We have an incompetant PM, government and an incompetant Mayor.
Do not take my words for it, watch the assembly online.
- Richard Partridge, Eaton Bishop UK, 25/11/2008 13:43
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People in glass houses should not throw stones Boris! Who wants to throw away millions by scrapping bendy-buses, who is axeing import public transport projects? You act more like a drunk than Gordon, and you probably are!
- Michael, London, 25/11/2008 13:43
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Boris for Tory PM.No if buts or anything else.Go Bojo!
- A Moreno, Luxembourg, 25/11/2008 13:34
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"St, London", bye bye then..
Can you take a few more 4x4 driving, sub-urban neo-con torys with you?
- Nick, London Bridge, 25/11/2008 13:29
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Fancy an ex-Bullingdon Yob accusing somebody of being drunk!! Boris and his mates were famous for getting legless and smashing up restaurants. The Police never got involved. That just shows the importance of being super-rich, still a Tory Policy, with Sebastian the Stockroker and Berty the Banker complaining about the Tax increases for the Super-rich.
- Hugh Leader, ealing UK, 25/11/2008 13:25
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For sometime now we have been told that merit should be rewarded where possible or otherwise folk wont bother doing the value added. Whatever happened to the salary paid to do the job? Does the worker on the minimum wage deserve nothing more…and if so who much? If poverty is to be removed then how will we know when that has happened and if recognised, does it appear reasonable to expect to do more?
Capitalism, like communism, has failed us all. The notion that capitalism creates wealth appears justifiable when comparing our lifestyles since the sixties or even earlier. What it does not explain is the growing gap between the few and the rest of the population or more interestingly, the failure of markets in general to learn anything from history. From the south sea bubble to the present credit crunch, capitalism appears to have learned nothing and perhaps never will.
What is needed is a debate on where we should go next. Such a debate needs to embrace universal responsibility and national accountability, along with a joined up approach to our global problems in general. If the traditional business model is failing us and it appears yet again that it is, where should the smart money go now?
- Profesor Brian Fissenden, Addington, Kent, 25/11/2008 13:11
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Sarah of London, get a brain. The more you earn, the more tax you already pay. I earn no where near 100k but to those who do and do so legitimately, good luck to you.
I'm sick of peoples jealousy towards those who get off their backsides and are adequately rewarded for doing so.
Believe you me the braindrain has already begun, and I'm seeing [on a weekly basis] business units at my workplace moving overseas.
So what then Sarah, and all others who think this is a good move for Britain? Because we really have a strong manufacturing industry don't we?
- Scott, London, 25/11/2008 13:07
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Boris seems more intent on showing off his ability to over-articulate, than actually understand the economics behind the budget, and frankly has zero credibility here.
Support for the poor a/ helps the people who most need it, and b/ is the most targeted way to use fiscal stimulus as they spend it quickly and domestically
Whenever tax is increased on the rich, miscelaneous unnamed "City figures" cry "brain drain", brain drain to where exactly?
There is a valid point however, buried under all of the waffle about drunks and lab rats;
Infrastructure projects do need increased (or brought forward) investment to stimulate job creation. Although, not sure why Boris is calling for this on the one hand yet criticing the borrowing to do it on the other?
The other issue is that entrusting Boris with billions of tax-payers money, is a fairly unpalletable choice for central government, as Cross-rail etc, are large, complex and mess-up-able projects for an inexperienced light-weight mayor to run
- Peter, Camberwell, 25/11/2008 13:04
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If Brown is a drunk then Boris is a Junkie. I am tired of window dressing politicians like Boris. It's a shame that he is accusing Brown of trying to improve his electoral fortunes while recently he has been trying to make amends for calling black people piccaninnies by proposing that illegal immigrants should be granted amnesty. I won't be surprise if Boris lunch a leadership chanllenge against Cameron to further his own political ambition. Boris went on by saying there would be an increase in taxes in future. Common Boris if you were that gifted clairvoyant why did you not warn us in advance about the credit crunch. My advice to Boris is that he should give credit where it is due. The Labour has always been a pacesetter - and created the office of the Mayor. If Brown was a manic meddler you won't be talking like a junkie from that office. I don't know if you were in favour for the creation of the Mayors office. Nonetheless, i know the Tories were against the creation of the NHS. Learn to respect your PM no matter what party he comes from.
- Alex Lisinge, Putney London, 25/11/2008 12:59
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We all know Boris's background..bafoon, politician, journalist and columnist. NOT an economist. He is once again doing what he does best, producing soundbites. He has no idea what is going on in the economy and he should keep quiet as his job is not to lead the opposition, but to lead london.
- Sunny, london, 25/11/2008 12:54
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How would Boris spot anyone acting like a drunk?
- Alan, London, UK, 25/11/2008 12:40
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what your are all forgetting is that it's not just "financial people" that earn more than 150k, what about the hard working man who set up a business... it's not as black and white as herbert and sarah would like to believe!
and sarah, if you managed to set up a business and earn 150k i think you'd be pretty annoyed when almost half of it was taken away from you, but obviously the reason you have your point of view is because you havent.
- Daveb, london, 25/11/2008 12:32
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For the first eight years of the last Tory Government the top tax rate was 80 percent and Thatcher produced an Economic Miracle in 1987. Sadly it was followed by another recession in 1990. This was the time when the Trickle Down effect of letting the extremely rich get huge pay increases and pay less Tax was going to enrich everybody. Unfortunately all the normal workers got was wet legs from the Rich trickles.
- Tommy Cockles, Acton England, 25/11/2008 12:32
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An amnesty for illegal immigrants is purely a case of common sense. No current illegal immigrants are going to be forced to leave under the government's shambolic immigration policy meaning that we either turn a blind eye and ignore an entire sub-strata of population or just accept the fact there are a number of people in London illegally and legistimise them and collect the resulting taxes and bring them within the system (which they will help pay for) and alleviate a lot of the poor circumstances and conditions in which such people live..
Boris is entirely right on this point and also on the wider point regarding the government's clutch at straws regarding saving the economy (which they broke).
Britain will reside in the same debt bracket as Hungary and the Ukraine for the next ten years and may fail to compete with the likes of Germany and France which could see the City suffer.
Love or hate City workers, they are directly responsible for teh wealth and health of the nation. By punishing them, Gordon Brown will punish you.
- Stephen, London, 25/11/2008 12:27
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Oh No! Raminder from Northolt and "St" from London are both leaving the country.
Given the number of people on this site who are "leaving the country" I'm sure in a couple of weeks the only people left in London will be those who aren't depressing, greedy whingers. It's called a democracy. If people don't like the government they can be voted out at the next election. But as all the Tories are off to Australia they've got a good chance of being re-elected now I reckon.
- Sauning Tic Gill, London, England, 25/11/2008 12:27
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We are already some of the highest taxed people in the world, and believe it or not but there are plenty of people out there in other professions than finance that earn over £150k.....
- Damian, London, 25/11/2008 12:24
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These people know they are killing the country...There is an agenda here!
- Gwaddilove, london,ENGLAND, 25/11/2008 12:24
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Anyone fancy a pint?
- James Mcardle, London, 25/11/2008 12:14
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Can there be a clearer demonstration of where Boris Johnson's real priorities lie as Mayor? Fares go up above inflation in January, thousands of people on income support faced months of uncertainty after he summarily scrapped the funding of half-price fares, (before changing his mind and deciding to bring it back after a four-month gap, but without telling us how he'll fund it). However, even slightly touch the salaries of people earning several times the average wage and he comes leaping to their defence within hours. It's in his bones that he was elected to look after the rich, and the rest of us can get stuffed.
- Tom, London, UK, 25/11/2008 12:07
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Sarah - Why don't the long term unemplyed get a job. A report today indentifies that we now have families where 3 generations of men have never worked and draw the dole. Surely, cutting the benefits of people who refuse to work (currently nearly 3m according to govt figures) would generate far more tax and commercial revenue and less public purse dependance than cheesing off a few high earners with a rise that most of them will avoid paying and will force out the country.
People forget , remember what we had before the middle classes? Nearly a third of the country in the service of the landed gentry who served as World War I cannon fodder .
- Big Andy, London, 25/11/2008 12:06
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All these tax increases would not be necessary had the Government set aside money in the good times to be spent in the present bad times but they did not. They spent and spent on "investments" which were a waste of money.
- William, London, 25/11/2008 12:02
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Boris is right. His Londoners have been conned. Just wait for massive council tax hikes,fares up,water rates up,booze and fags up in the next budget, businesses closing like there was no tomorrow....and in case we forget,how much more will the Olympics cost after this so called budget??
- William Grierson, Kimpton, UK, 25/11/2008 12:01
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If the "talented" people hadn't gambled like they did we wouldn't be in this mess...why shouldn't people earning over £150,000 a year be taxed more?...
- Sarah, London, 25/11/2008 11:24
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What a terrible thought. The Masters of the Universe who totally ruined the economy are going to take their huge salaries and bonuses elsewhere. The question is who will take them and whose economy will these overpaid and dishonest reprobates ruin next? If they could leave us a few thousand pounds from their last bonuses perhaps we could have a street party.
- Herbert Hoover, Acton England, 25/11/2008 11:20
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This is a bit rich coming from someone who has puts forward stupid suggestions such as an amnesty for illegal immigrants living in London.
- John, London, 25/11/2008 11:04
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Boris misses the point. Surely the problem with Alistair darling's budget proposals is not that he failed to produce proposals to address London's issues (encouraging the big earners to stay in the city etc) but that his reduction in VAT and other measures designed to increase consumer spending cannot produce the desired result when we see firm after firm lay people off.Will a 2% redution in VAt make you more likely tp buy that new overcoat when you don't know if your job is safe?!!
- Paul Bretherton, Bordon Hampshire, 25/11/2008 10:54
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Who are these 'talented' people who may leave London in the next 'brain drain'? Are these the same people who have almost BANKRUPTED the whole country by their irresponsible gambling in the City? For me they cannot leave fast enough.
- Adrian, London UK, 25/11/2008 10:51
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Well said Boris. Get rid of Blair-lite Cameron and lets save the country before Brown kills it. NuLAbour, Brown and Blair are traitors to the United Kingdom and should be treated as such.
- Tony, Essex, 25/11/2008 10:43
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Has nobody noticed that the personal allowance changes announced mean that, far from a 45% top rate on incomes over £150K from April 2011, the ACTUAL TOP RATE ON PART OF INCOMES OVER £100K FROM APRIL 2010 WILL BE 60%.
That's 60%, not 45%.
That's April 2010, not 2011.
That's on incomes over £100K, not £150K.
Stealth tax, or what?
Sam Weller, Chartered Tax Adviser
- Sam, Basingstoke, England, 25/11/2008 10:05
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I am not sure Boris is well positioned to comment on economic management...he could not even hold the financial responsibility of a cabinet post...
the tory party as a whole only have themselves to blame for this situation. Labour would have been out of power years ago but the Tories became obsessed with issues that the electorate did not care about - namely Europe. Because of this they missed out on electing their greatest politician of the last 15 years - Ken Clarke...
who not only run the economy with great skill but was anti the Iraq invasion..
- Martin_Clerkenwell, london, 25/11/2008 10:04
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Finally, we have a mayor who tells it like it is and will speak up for average Londoners! I’m so glad I voted for Boris instead of the other candidate who would no doubt still be toadying up to the Labour party.
Unfortunately, as much as I love England and love the idea of what I think Boris can achieve I the Capital, my Australian wife and I are off down under as soon as the taxes start to bite.
The Labour party has ruined the economy, AGAIN, and unfortunately I can’t see things getting better until Brown has gone. The only thing Brown has achieved is to replace the Union Jack with the hammer & sickle. Keep the red flag flying, eh, Crash Gordon.
- St, London, 25/11/2008 09:48
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Sack Gordon Brown and Alister Darling - both are going to put this country into rack and ruin, we havnt elected this man as our primeminister, so who is he to sell the family silver!
I earn over £100k a year, and this episode has made me realise that for me to stay in this country would now be a lose lose situation!
- Raminder Bhalla, Northolt, 25/11/2008 09:46
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well said Borris. Watching this government act on this financial crisis is like one of those adverts on TV for consolidating all your loans into one big loan that you will pay off over the next 500 years....
- Stuart, london, 25/11/2008 09:44
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