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Alistair Darling hits rich harder with 'class war' taxes
Paul Waugh, Deputy Political Editor4 Dec 2009
Chancellor Alistair Darling is planning to ram home Labour's "class war" with more taxes on the rich in the pre-Budget report.
Mr Darling will use funds from inheritance taxes on the wealthy to pump cash into new schemes which will help the young unemployed and green jobs.
The mini-budget will also confirm the Government is slashing childcare tax perks for those on higher incomes, while protecting the scheme for the less well-off.
The Chancellor will use next week's set-piece Commons occasion to attack Tory proposals to slash inheritance tax and cut child tax credits.
As part of a plan to reduce the £175billion deficit, Mr Darling may freeze the threshold at which IHT becomes payable. If property prices rise, more householders will be liable to pay the 40 per cent tax.
In a further attempt to open "dividing lines" with the Tories, the most nakedly political pre-Budget report for years will make clear he has decided it is too early to cut spending.
He will claim Conservative plans for "austerity" would deepen the recession for millions on average incomes while giving tax perks to the rich.
The childcare voucher U-turn by the Government - which came just weeks after Mr Brown used his conference speech to announce he was scrapping the scheme - is being used as another way of pinning down the Tories on tax.
Childcare voucher relief for higher rate taxpayers will halve to the 20p rate, an attempt to goad the Conservatives into backing a perk for the more prosperous.
The "class war" theme has been drafted by Gordon Brown, Lord Mandelson and Schools Secretary Ed Balls.
Reader views (3)
Excellent, remind me again at what salary the 40% tax band starts? £35k isn't it? According to GMB "Full-time workers in London earn an average of £46,000", meaning that the vast majority of London workers are paying 40% tax to prop up the irresponsible spending of the government.
- Bob, Cheam, 04/12/2009 15:32
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What happened last time - the rich left and took their money with them - then everyone left will pay alot more - including the poor.
The seeds for this were sown a long time ago. This Government has always spent more than it had, its growth projections over the last 10 years were always over optomistic, and public sector employment (both in terms of numbers, pay and pensions. So when the banking crisis hit we were ill prepared.
By way can any one remember at what price G. Brown sold our Gold at - Its now $1200/oz
- Very Angry At Mp'S Expenses, Home Counties, 04/12/2009 14:56
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The sounds of desperate scrabbling at NO.11 and Labour retrenching to failed policies from the 70s at No.10
All those Labour MPs (Lords & Ladies!), with public school educations playing the 'class' card? Well you will get the stupid Scots and Welsh voting for them. But I strongly suspect that the vast majority of England will look to make their mark in another box.
- Frank, Home Counties, England., 04/12/2009 11:24
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