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Millions of families will pay the price for runaway government borrowing as Alistair Darling unleashed tax hikes and a strict public sector pay cap.
The Chancellor hammered Middle Britain and higher earners with a one per cent rise in National Insurance on earnings over £20,000.
He squeezed four million nurses, teachers, police and other public workers with a one per cent limit on pay rises from 2011 and froze government contributions to their pensions. On top of that he clobbered the banks with a 50 per cent super-tax on “excessive” discretionary bonuses of more than £25,000.
New taxes will rake in £8.5 billion overall from 2011 to 2013. Some £21.5 billion will be trimmed from spending over the four years to 2014. Mr Darling's “spend now, pain later” pre-Budget report will see the Treasury suck £3 billion a year from NI, £3.5 billion from public sector workers and £550 million from the banks.
The pain starts in 2011, the year after the election, when spending rises to stimulate growth will be suddenly turned off and replaced by Whitehall belt-tightening. The Chancellor insisted his “tough decisions on tax” were fair because the broadest shoulders would pay the most. Labour MPs relished the attack on the banks, whose accountants are already tonight working overtime to find loopholes. For a bank dishing out a bonus pot of £1.5 billion, as state-owned RBS was said to be planning, the cost might be as high as £500 million.
For better-off earners, the National Insurance rise will be almost equivalent to a full penny on income tax because a half-point rise was already in the pipeline.
Someone earning £30,000 will lose £90 a year. The loss for a ££40,000 earner is £190; for £100,000 earners, it is £520 and for £200,000 earnings it is £1,520 a year.
CBI director general Richard Lambert said: “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.”
In addition there will be a three-year freeze on the threshold for paying the 40 per cent rate of tax, sucking tens of thousands onto the higher rate which bites at £43,875.
Mr Darling stressed to MPs: “No one with income below £43,000 will be affected by this change.”
Tax increases are already due to kick in from April, with a 50p top rate on £150,000-plus earners announced in the spring Budget.
Businesses and banks reacted with anger at the taxes, claiming they risked “an exodus of talent”.
And shadow chancellor George Osborne said: “At the end of their period in office they have indeed adhered to that greatest of golden rules — never ever trust a Labour government with your money.”
Mr Darling spared low earners by making the first £20,000 of earnings exempt from National Insurance. Someone on £10,000 will pay £110 less NI.
But he then infuriated the unions put a squeeze on pay in the entire public sector for two years starting in 2011. A one per cent pay cap will fall on four million including teachers, nurses, civil servants and police officers.
He said the money raised would guarantee no cuts in schools and hospitals and no reduction in police numbers after current spending pledges expire in 2011.
And he found some spare change for some symbolic handouts to low income families, including free school meals for an extra 500,000 primary school children and even a cut in bingo duty.
Small firms benefit from putting off a 1p rise in corporation tax, a lifeline to 800,000 struggling businesses that were due to be hit.
He contrasted their struggle with the attitude of the banks, whose bonuses came despite their making collective losses of £80 billion and relied on the taxpayer's help to survive.
“There is no bank which has not benefited, either directly or indirectly, from this help,” he said. “However, there are some banks who still believe their priority is to pay substantial bonuses to their already high-paid staff. If they insist on paying substantial rewards, I am determined to claw money back for the taxpayer.” His speech was peppered with jeering at worse-than-expected economic figures, including £6 billion higher borrowing over this year and next. But the figures were not as bad as some private analysts had feared until recently.
In a politically-charged presentation, Mr Darling argued that Conservative plans to faster cuts would endanger public services and risk a double-dip slump. He said it was a “critical time” for the economy and spending could not just be cut off.
“The choices are between going for growth or putting the recovery at risk,” he said. “We can't be complacent,” he said. “To cut support now could wreck the recovery — that's a risk I am not prepared to take.”
He turned the pressure on the Opposition by cancelling a cut in Inheritance Tax. Similarly, he promised a range of measures to attack tax exiles and off- shore accounts.
The Chancellor's key points:
VAT to return to 17.5 per cent on 1 January - but will not go higher.
Planned increase in corporation tax for small businesses in 2010 is deferred.
The Time To Pay scheme to be extended for “as long as it is needed” to help businesses spread tax payments over time.
Scheme to cover the mortgage interest payments of people who have lost their jobs extended by a further six months.
State pension to go up 2.5 per cent rather than frozen in April.
Child benefit and some disability benefits will go up by 1.5 per cent in April.
Return to economic growth expected in 4th quarter.
Economy expected to grow by 1 to 1.5 per cent next year, forecast unchanged from Budget.
Bingo Duty to be cut from 22 per cent to 20 per cent from next Budget.
No windfall tax on bank profits.
Special one-off levy of 50 per cent on bank bonuses above £25,000 to raise £550 million.
Government borrowing will be £178 billion this year, falling to £176 billion next year, then £140 billion, £117 billion and £96 billion by 2013/2014. In 2014-15 borrowing falls to £82 billion.
As a share of GDP borrowing will be 12.6 per cent this year, falling to 12 per cent, 9.1 per cent and 7.1 per cent. By 2013/14 it will be 5.5 per cent and by 2014-15 it will be 4.4 per cent.
Net debt will be 56 per cent of GDP this year, and will rise to 65 per cent next year, and 78 per cent by the end of 2014/15. For two years from 2011, all public sector pay settlements to be capped at 1 per cent.
Public sector pension contributions by the state to be capped from 2012 for teachers, NHS workers and local government employees saving £1 billion a year.
Cut in senior civil service pay bill of up to £100 million over three years. Treasury must approve any new Government appointment over £150,000 and all bonuses over £50,000.
Public spending rises £31 billion, 2.2 per cent in real terms, next year.
Spending growth will slow to 0.8 per cent from 2011/12.
Another £5 billion of public spending savings identified
New scrappage scheme will help up to 125,000 homes replace inefficient boilers.
The existing Crossrail, Thameslink and M1 upgrade projects will continue as planned.
Government to offer financial support for 10,000 under-graduates from poor backgrounds to take up internships in industry and the professions.
Inheritance threshold frozen at £325,000.
Threshold for 40 per cent tax frozen for one year from April 2012.
All employer, employee and self-employed rates of National Insurance to rise by a further 0.5 per cent from April 2011.
Extra £2.5 billion to be set aside next year for military operations in Afghanistan.
Click here for the report as it happened
Reader views (65)
"New taxes will rake in £8.5 billion overall from 2011 to 2013"
So, the new taxes that come into effect now will not pull in debts until AFTER the socialists have been kicked out eh? That means the socialists can more money NOW to lavish on their fantasy world dependent population demographic in a grab for their votes (to reduce the Tory majority and make it harder for them to govern), yet the incoming government will still have it all to sort out.
- Rogan, Irving, 10/12/2009 05:42
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Quelle surprise.
- Sian, Whitechapel, 10/12/2009 01:45
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I think that Gordon Brown is under the impression that if the British people are stupid enough to vote for Labour three times in a row then they are too stupid to have their own money to manage for themselves and definately too retarded to relise that Labour and all of the other MP's are just a bunch of corrupt, traitors who are stealing it all.
That's politics, I would imagine, if I were inteligent enough to know or have an opinion.
- Conservationchris, Knutsford ENGLAND, 09/12/2009 20:38
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£90 for someone on £30,000 isn't really much. Doubt it matters who's in government they'll both have to do something like this.
I'm a bit worried the only people who make any money in this country (except footballers and celebs of course) might decide to leave...
- S Robertson,, London, 09/12/2009 20:36
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My understanding of economics is far from great. I am horrified by the realisation that this govt's understanding is infinitely worse than mine.
The way to get out of recession is to lower costs for businesses, destroy a ton of the red tape that is hurting them and lower state spending. Surely this would be obvious even to a child? Govt cannot live beyond the means of the nation indefinitely.
It is the private sector that creates prosperity, not the public sector. Is there anyone outside of this govt who does not understand that one simple fact?
This govt is guilty of economic incompetence, pure and simple.
- Elliot Kane, London, England, 09/12/2009 20:32
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"only the poorly educated, and uninformed are saying that"
Scotty, so you're trying to defend our bankers?
I have to say there is alot of irony there considering you pass criticism about public transport workers!
What exactly does 'education' have to do with facts?
- Student, London, 09/12/2009 20:02
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If uk was a proper democracy, the likes of blaire, brown and darling would be shot for treason
- Mark Armstrong, london. uk, 09/12/2009 19:45
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Only the rich and very poor benefit from this govt. Middle income professionals who do things properly i.e. marriage then kids, and save for a house then pension are completely stuffed. Osbourne is right on this one, my pips are squeaking and seriously considering emigrating next year.
- Mattk, Ware, 09/12/2009 18:57
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Yesterday we had Phil Winger telling us that the top 29 managers in the Border Agency worked 24/7 and faced daily danger from paper cuts and killer staplers and therefore needed an average bonus for doing their job badley of £10,000 with the best paid getting more than some of the soldiers returned in body bags from Labour's wars.
Today Darling is reducing the tax on BINGO!
What sort of a Micky Mouse Government is this?
- Dave B, Beckenham, 09/12/2009 18:25
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So we had to borrow billions from the banks to bail the bankers who took all the shareholders and depositors money, and a few hundred billions spare cash. Now darling, you want to tax these bankers a few thousand so you dont look like a confounded idiot?
- Fakegord, ShanghaiChina, 09/12/2009 18:23
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Steve, London
"We the population voted them in time and time again and with landslides"
Actually Steve, at the last election more of the population voted Tory than Labour (in number), but because Mandelson, Campbell and Blair had the great idea of changing constituency boundaries in their favour, Labour won by default,in a first past the post system.
Like everything this bunch of corrupt crooks do or claim to have done.....it was another stitch up.
- Ronnnie, London before Labour, 09/12/2009 18:10
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as i understand it, the previous chancellor, a MR BROWN,
a frugal and prudent scotsman, unleashed the bank of england from political control. the governers of the old lady of threadneedle street then either deregulated, or failed to police the various other financial institutions.who then took to taking liberties, rewritting any and all previous controls and ran recklessly amock.
Mr Bown sold our gold reserves at knockdown prices and let the moths out of the uk purse.then pretty much pllaged the pension pot of all and sundry.
awhile later all the feckless and loose chickens returned to roost in a sorry state and the fiscal world
fell out of the rear end big time.
thus politicos and bankers were the root cause of all our problems, we then bailed them out big time.
now they award themselves huge bonus's for the priilage of having it away on a grand scale.now the present chancellor wants us all to foot the bill for all the ineptitude, screw ups, mismanagement and almost criminal mayhem they caused.
did i get it wrong, do i not understand something?
are the great unwashed that stupid that they'll just roll over, shrug their shoulders and dig deep.
then come the next election in may, all will line up to offer up our gratitude and swallow hook, line and sinker the promise of jam tomorrow and a walk down the yellow, red, or blue brick road.
wake up and smell the excrement, we have the power, not
those that would blind us with vain glorious promises and rob us blind.
- Mike O'Brien, london.uk, 09/12/2009 18:04
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Memo to Nu Lie Bore:
"The strength of a nation lies in its Middle Class"
Aristotle
Listen and learn!
- Middle Rage, London, 09/12/2009 17:37
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It is with some nostalgia that we watch T.V. Programmes going back in many cases nearly forty years.
Why is it that there are few such comedy programmes now ?
Is it because most of to-day's comedians have gone into politics ?
- Bernard Parke, GUILDFORD, 09/12/2009 17:14
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David s.,Burgess Hill,Methinks the Bingo you and your like shoud refer to is the Gambling of money by dealers in the city who in The USA and in the UK have brought about the sorry mess we are in.
Do not blame the government or the world for this mess blame the bankers.
And do not be so condescending of the millions of people who enjoy with very little money the game of bingo.
Methinks that is something you Tories cannot understand.
- Denis Regan, harbin china, 09/12/2009 17:13
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Denis Regan from China whose comment appears here appears to be under the impression that these are TORY COMMENTS. What the hell? They're just the comments of sane rationale people. Dennis, do you think Brown and eyebrow know what they are doing? BINGO, i think you got it!!!
- David S., Burgess Hill UK, 09/12/2009 17:07
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Why is it so many English Tories cry the country down,are they desperate or are they greedy or are they completely anti-European at a great time of change globally.
Little Englanders willnot survive in a global world.
Believe it.
- Denis Regan, harbin china, 09/12/2009 17:06
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Not bad the measure to cut the tax on Bingo. The government have been playing it for 10 years and their number is finally up! Trouble is they've spent all our money playing it!! A run down bingo hall at the end of a collapsing pier - not a bad metaphor for Labour.
- David S., Burgess Hill UK, 09/12/2009 16:58
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We would still be in this mess no matter who was in power. Unregulated markets, over reliance on the financial sector and the Tories promising to match labour's spending plans(Cameron 2006). We are not finished butif we carry on with the same policies that got us here, and which both parties agreed on, the hole we are in will only get deeper. If we don't invest in skills, science and product we have had it. Industry first.
- Cronk, London, 09/12/2009 16:36
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Can i start a poll here? Are GB and Alastair (Brown and Brow) the most useless politicians of theirs or any generation?
- David S., Burgess Hill UK, 09/12/2009 16:35
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- B Lane, London
They lie so much they trip themselves up and forget what they say - especially Darling.
- Margy, London, 09/12/2009 16:34
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Complete and utter incompetence from these maniac spendthrifts. Now, we pay (and for generations! - what's the total? How many tillions?) because the lot's been thrown away.
Welcome to the dystopia that is Labour Britain.
- Tv, Hounslow, 09/12/2009 16:34
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I thik Andy of London has made the most intelligent point on this site.Well done Sir.
- Denis Regan, harbin china, 09/12/2009 16:32
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Possibly the most criminally insane and stupid set of changes ever put together by this idiotic government. I reach 50 next April and despair at their incompetence. With a lean time in my business and a useless pension pot that i can't now take until i'm 55 instead of 50 I'm feeling downcast by everything Labour. I really do wonder if some of the more useless parts of the public sector and the government have morphed into one? Its like being governed by a useless person in a fluorescent jacket with a clip board. Oh, by the way; if you've been effected in any way by what i've said there will be an 0800 number appearing after my rant. Don't worry, your call will be important to them. Your paying for it with your hard earned cash. CUT THE PUBLIC SECTOR BACK - DO YOU NOT UNDERSTAND?
Oh sorry they vote for you, we'll all pay more tax then....How very democratic and altruistic.
- David S., Burgess Hill UK, 09/12/2009 16:31
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I see they are trying to bring about the demise of landline providers - 50p per month to pay for 90% of the uK to get faster broadband by 2017.
That is the most wishy washy reason for a stealth tax that I have ever seen. Who is going to follow up the promises - who makes sure that is what the money gets spent on, and who bails out BT when everyone says Bugger that for a lark, I'll make do with my mobile.
My current broadband is no faster than 2MB and I'm quite happy with it thank you very much. bloody ridiculous government targets have got so much to answer for.
- Claire, Stone,UK, 09/12/2009 16:30
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Nice one Alasair. You just fired my cleaner.
How is it that after 12 years nobody in Labour understands how the economy works??
- Stew, London, 09/12/2009 16:27
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Poor old labour, spend, spend, spend, tax, tax, tax, its always been thus, and thus it shall always be. But don't complain too much, we the population voted them in time and time again and with landslides. Now we pay the price!.
- Steve, London, 09/12/2009 16:23
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What a disastrous day for this utterly useless Government. If they'd turned around and said we all have to pay more taxes and public sector employment will be cut, I think most people would have understood that is what needs to happen. Instead they come up with pointless, soundbite policies about bankers (which will come to nought, rest assured) and bingo taxes?
It would be comical if it didn't matter so much.
Brown could not be more out of his depth if he was tipped overboard above the Marianas trench.
- St, London, 09/12/2009 16:20
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Mr Darling stressed to MPs: “No one with income below £43,000 will be affected by this change.”
But surely anyone earning over £20,000 will be affected. Am I missing something?
- B Lane, London, 09/12/2009 16:19
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1 'runaway spending by the government' - all parties would have had to spend a similar amount to save the banks
2 these take effect from 2011 - the Tories have already said that if they get in they will be holding an immediate Budget - what will be interesting is how, if at all, the Tories change Darling's plans (probably not in any way that will benefit most taxpayers)
- Andy, london, 09/12/2009 16:18
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# "Public sector pension contributions by the state to be capped from 2012"
Obviously Darling & Brown don't realise that these Public sector pensions are "final salary schemes" with "defined benefits" (only the public sector has these schemes any more!!!) and are already grossly underfunded. If you cap Employer (i.e. State) contributions as proposed, then the black-hole in these Pension schemes simply gets bigger. Unless you cut back the benefits provided, or increase the retirement age (as has happened in the private sector), which this government has repeatedy refused to address, then you still have to fund the existing entitlements based on the individuals final salary. Sooner or later the taxpayer will have to make up the shortfall. Once again Brown & Darling simply don't understand the basics.
- Malcolm, London, 09/12/2009 16:16
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I would like to coment on the overtly Tory comments on this site.
1.to Brian G.Norfolk/Nobby Clark,the rare Tory in Scotland,and Maya in London.
Your all right Jack!!!Think of the few do you?
Also to Anglo.Sussex,How insulting your piece was,I am not unintelligent,I suggest maybe you are.
- Denis Regan, harbin china, 09/12/2009 16:14
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Someone from the British Banker Association was being interviewed and said bankers would leave the UK to avoid the 50% bankers tax. That's loyalty for you!!! After we bail them out!
- Anonymous, London, 09/12/2009 16:12
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At 68 and 65 my husband and I are still working and paying tax. We finished paying the mortgage a year ago.
Neither of our two children is dependant on the State for anything, and they will make sure our grandchildren also pay their way, by making whatever sacrifices it takes to educate them properly. I look around me and wonder whether this was the wrong way to live our lives. Had we not skimped and saved to buy a house, we could be housed in 'social housing'; a right which could have been passed on to our children (free of tax. We could both be claiming all sorts of benefits and allowances. I see around me lots of people who are younger and fitter than us who do just that, and appear to have money to buy fashions, motorbikes and endless take aways. Yet, this useless government has the nerve to talk about 'hard working families'. The only way to have a guaranteed standard of living is to live off the State (the taxpayer).
- Beatriz, London, 09/12/2009 16:11
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Old Gerry Cottle's circus doesn't have as many clowns as this government.
"In the name of God go now" springs to mind
- Lionel Mandrake, Watford, 09/12/2009 16:06
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Bingo / Its now pay back time for browns failed financial policies. We are now a banana republic who grows no bananas ! Just wait until the collapse in sterling and inflation reappears with nasty shocks. The only folk that this does not effect are the work shy on benefits. Nothing changes.
- John, dundee, 09/12/2009 16:06
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Wake up Keith. Almost every day the same old myopic defence of a busted flush government. Why don't you look at the facts and make a reasoned judgment instead of trotting out the same old, tired anti-Tory guff. We know how you will vote come the next election, irrespective of the catastrophe that faces every man, woman and child in this country. If you can't see the mess unfolding before your very eyes thanks to "Tony & Gordon" as you like to call them, you don't deserve a vote. Everything they've touched since 97 has been an unmitigated disaster. It's politics, not football. You're not stuck to supporting one team. Make a decision on what's right for the country, not tired old views handed down from when your parents had a real Labour party to vote for. It's thanks to blinkered views like yours that the country is a laughing stock. I note you had nothing to say on Darling's lamentable budget and Brown's joke of a premiership.
- East, London, 09/12/2009 16:00
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So Mr Darling spared low earners by making the first £20,000 of earnings exempt from National Insurance. Someone on £10,000 will pay £110 less NI. Perhaps he also "spared them" from clocking up rights to the state pension - Clever that !
- Cw, suffolk, 09/12/2009 15:57
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@ Jenny: "Best of all bankers may be redefined as gamblers and this is winnings, after all that’s what everybody is complaining that they are."
to be fair Jenny, only the poorly educated, and uninformed are saying that.
you need to keep in mind most people are just parroting what they have heard - often from unreliable sources, and do not actually understand whether its true or not. And of course, in no way is it in the governments interest to misinform the public, and try and dodge their own accountability now is it?
not forgetting that "bankers" as a generic term is about as useful as the term "workers" to describe the actual function and role of someone.
- Scotty, London, 09/12/2009 15:51
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Businesses and banks reacted with anger at the taxes, claiming they risked “an exodus of talent”.
I am sure we will survive. When will these people stop flattering themselves!
- Darren, london, 09/12/2009 15:50
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Never trust a man whose eyebrows are a different colour to his hair.
- Alex, St Albans, England, 09/12/2009 15:46
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I'm so pleased to be paying more NI to subsidise the masses that play bingo. Maybe I should petition the chancellor to reduce taxes on my hobby next time...
- Adam, London, 09/12/2009 15:37
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Legal Immigrant, how true the way market forces work. Those who are able will pass the tax increases on, those who can't will be hit the hardest, i.e. the poorest. Darling/Brown have screwed up yet again!
- Dannyp, Egham, 09/12/2009 15:27
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Sack the lot of these utterly useless bankers, and replace them with some more deserving workers that will do the job at a salary that will make up for the damage that they have done to this country!
This country has been paying the price for rewarding over paid incompetant morons ludicrous bonuses for far too long!
Bankers are like footballers, pay them too much their work performance deteriorates!
- Student, London, 09/12/2009 15:25
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It is the benefit culture that is costing this country dearly. That needs to be changed; but its not in Labour`s interest to do anything about it as it will affect their core voters.
It's to early to make a full and informed judgement on any Labour budget speech. It usually all unravels in a week or twos time when the full implications of the fine print are deciphered.
- Brian G, Norfolk Gorleston, 09/12/2009 15:24
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It comes down to what you think will encourage and develop the economy.
Cuts or trying to maintain demand.
This may be short term or long term as a measure. The reality is that the Tories ould have done the same if they were in office but now have to show themselves as different.
With typical sheep mentality the Tory supporters now propound this political slight of hand as being sound economic policy!
- Gareth, London, 09/12/2009 15:23
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A busted flush economy being run down further by a busted flush Government.
- James Elliott, Eastbourne, UK, 09/12/2009 15:23
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When will these idiots learn that their ecomonic policies do NOT work and they always lead us to financial ruin? They are so stupid they cannot even learn from their past mistakes. It's the 1970s all over again and I remember that debacle well - only this time it's 10 times worse and these leftist numpties will still get away with their crimes of envy and hate. Duplicitous incompetents - the entire labour bunch.
- Margy, London, 09/12/2009 15:13
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The "we do not need manufacturing" chickens have come home to roost.The wonderful financial services sector that was all we needed has screwed up.Now just pay up and look big.
- Colin, barking essex, 09/12/2009 15:08
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Looks like the Irish have managed to get their budget right. We languish behind this second rate economy because we make no attempt to pay off the billions we have in debt. Darling even admits he had the economy wrong. Where are the Civil service cuts, why raise National Insurance and then make no attempt to contribute to reducing the debt, even as a token gesture to show that the UK is a serious economy.
No Darling Brown and the other toddlers in the nursery are electioneering and making promises / threats that they know they will not be in government to enforce.
Bonuses may be put on hold, to ensure that the bonus gained is sustainable as everybody wanted and so not subject to this tax. The Bonus may be deferred to next year or produced as higher pay providing the individuals concerned work abroad for a year, and so are not part of the UK tax system. Best of all bankers may be redefined as gamblers and this is winnings, after all that’s what everybody is complaining that they are.
- Jenny, Merton, 09/12/2009 15:06
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Hang on - did Darling actually hammer the better offs? Well, let's see. I will push back building work on the house (let the builer / decorator look for business elsewhere), drive my 3 year old Merc for another 3 (let the dealership close if it has to), fire my gardener and cleaner and stop buying 10 books a month from Amazon. I will not, however, pull my kid out of private school. So is it the better-offs getting hammered or is it Labour sending the less well off straigh to the benefits queue?
- Legal Immigrant, London, 09/12/2009 15:05
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Labour have managed to further alienate an already disillusioned public with budget measures that hit the average family in the pocket and make the UK a laughing stock compared to our peers. The people that the UK should retain will leave to be replaced by those that contribute less. This is short sighted and naive. The banks that have taken over £40k in handouts for every family in the UK have largely got aweay with it whilst I am expected to contribute even more. I have never seen such uproar at a budget report and I can only hope that this seals the fate of the labour government.
- Matt, London, 09/12/2009 15:04
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"a cut in bingo duty"
Not trying to appeal to the 4 or 5m layabouts on benefits then, Alistair?
So much for paying attention at school, getting a job and contributing to society. You're better off sitting on your lardy backside in front on Jeremy Kyle.
- Nobby Clark, Perth, the Scottish one, 09/12/2009 15:01
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A rubbish and dishonest budget statement from a rubbish and dishonest government that only knows how to do one thing; help itself to ever more of our hard earned money and then waste it. Brown and Darling are destroying our economy just like they, and their partners in crime, have destroyed so much else about our country. Roll on May 6th and let's get rid of them for good.
- Matt Davis, London, UK, 09/12/2009 14:59
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As a result of the new 50% tax on bank bonuses "the Treasury hopes most banks will cancel thousands of planned pay-outs". But surely if they cancel the bobuses, then the Government will not collect the £500m in revenue that Darling says he will use to fund tax breaks for the poorest!!! So how will he then pay for these new political give-aways to core labour voters - borrow more!!!! Typicsal NuLabour muddled thinking.
- Malcolm, London, 09/12/2009 14:54
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The tactic seems to be to hand out what goodies he can and leave all the nasties for the next (Tory) government to sort out.
The unintelligentsia who vote for them will swallow it hook line and sinker
- Anglo, Sussex UK, 09/12/2009 14:53
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Not certain what part of our foreign aid bill will be cut, including the totally massive one to India - due for increase say both main political parties - although various surveys have said India will be a bigger economic (and diplomatic) force than UK in just a few years, along with other ocuntries. As over-population is one of the main causes of now and future problems for this country and indeed the world, would have been good to encourage lower birth rate.
- Helen, norwich, 09/12/2009 14:52
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Screwed again! Work hard, turn up every day, and all I have to look forward to is an annual profit related bonus. Thanks to the bank crisis, this year, my company has seen a loss! I really would be better off on benefits as I see no advantage to working. I don't see very much for myself once I pay my NI, Tax, pension, mortgage, bills, Oyster card. I take comfort in the fact that my higher taxes, and higer NI contributions will keep the lazy layabouts at home and fund their childrens education!! By the way, teachers are already very well paid ( more than me and I am in senior management, so good on Darling putting a freeze on them!
- Maya - London, London, 09/12/2009 14:29
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This Budget is a joke. Its shows that Brown/Darling just do not know how to get serious about the U.K.'s astronomical debt. All public sector salaries should have been cut by 5%. Watch for Poors to lower the U.K.'s credit rating to AA, which will mean even higher payments on the U.K. debt in future -- a downward spiral! We're back to the "bankruptcy watch" of the 1970s, with a vengeance!
- Phil Jones, London EU, 09/12/2009 14:28
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What about public sector pensions. It has been shown that practically all the NI contributions are used to sustain just these. If you want a good pension then you should have to pay fot it.
- Mike, London, 09/12/2009 14:21
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".. for some modest handouts to low income families, ... and a cut in bingo duty."
So he is bribing the typical Labour voter.
- Frank, Home Counties, England., 09/12/2009 14:18
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He hasn't the guts to tax the rich: the non-doms, the Russian Jews, the Monaco-based retailers etc etc.
- Neil, People'S Republic Of Europe (Formerly England), London UK, 09/12/2009 14:15
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Without doubt, David Cameron's lamentable performance in the Commons this lunchtime casts serious doubt over his chances in the forthcoming election. Even Tory backbenchers were jeering him
- Keith Price, Luton, Emgland, 09/12/2009 14:13
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So working people are again going to be hit hard by New Labour. We all know that national insurance is just another name for income tax and yet are expected to believe that Darling is a prudent finance minister! The man is incompetent and should resign immediately.
- Simon, London, 09/12/2009 14:13
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I gather Gordon Brown has altered his catchphrase from "No more boom and bust" to "No more boom, we're bust".
- Doug Watt, london (EUSSR)14, 09/12/2009 13:58
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