Lambert Chapman LLP consider the Pre Budget Report

On our main website we have a section containing the information set out in the Chancellor of the Exchequer’s Pre Budget Report Statement of 24 November 2008. It also includes comments on the statement by a number of Lambert Chapman LLP Partners. If you would like to be taken to the site please click on the link set out below to do so.

Having read the comments you might wish to make your own contribution to what the Chancellor or our Partners have said. To do this leave a comment at the foot of this article which will be posted after moderation considerations.  We welcome you adding to the debate that the Chancellor’s statement has created. Have we gone too far? Is there other policies he could adopt?

Let us know your thoughts.

http://www.lambert-chapman.co.uk/cgi-bin/iadmin.cgi?page=16&t=0&news_id=20946

It’s not going away: the 10p debacle that is!

The debate over the 10p rate debacle rumbles on following the publishing of a Cross-Party Treasury Committee report on the subject. The report suggests that 1.1 million households still remain £112 worse off under the emergency measures that Alistair Darling announced in May and that this announcement must not be a “one off” measure to appease those affected by Gordon Brown’s infamous final announcement as Chancellor in his final budget.

 

There was small praise for Mr Darling in that the measure he introduced was “the least bad option” but comment that it had been “poorly targeted” and concern over how this will be funded into the future as the Institute of Fiscal Studies have warned that Gordon Brown’s sustainable investment rule could be broken by this measure in future years.

 

Poor Mr Darling. He must feel like John Major did having won the 1992 election. Having taken on the Chancellorship he inherited the final publicity stunt Mr Brown thrust upon us in his last budget. So how does he get out of this mess?

 

Two options exist. Firstly resign and make a powerful Geoffrey Howe like statement to the House referring to my “learned plank from who I took over the job”, or secondly do the honourable thing and do a complete U-Turn and reintroduce the 10p rate band and increase the basic rate of tax back to 22%. The first option might help shift Gordon from Number 10 back to Dunfermline but might signal the end of his political career, the second might get him the sack in a pre budget reshuffle in a desperate attempt by the Cabinet trying to avoid seats in the Shadow Cabinet.

 

But if the second option is not done how do the Government ever hope to fulfil the needs of those requiring reimbursement and satisfy the cross-party treasury committee’s recommendations, whilst maintaining financial stability and satisfying prudence?

 

Climbing down is always seen as weakness and offers the opportunity of attack from opposition parties. But in this case would it not shut them up? Granted they will claim that “you don’t know what you’re doing” but having had 10 years of prudence with Mr Brown at the helm surely we don’t forget her altogether and embark on a financial suicide course that satisfies what purpose?

 

It has been a tough year for Mr Brown. Politically probably the worst of his working life. This report following 5^th place in the Henley by election must certainly reignite the “time to go” notes being passed in the House before Summer recess.

 

It doesn’t look good for Frank Field either. Having not noticed for over 12 months how the withdrawal of the 10p rate band was going to affect the tax paying public, he then makes a big fuss. He then backs down when the changes are announced only to then realise he might have been sold another pup, and now says; “We will be looking, when we debate this in the Commons, and when the government promises it will come back in November, for a proper settlement for everyone who lost out on 10p.”  

 

Come on Frank, if you asked the right questions before backing down you could have settled this by now and given us the General Election most people seem to want. But maybe you, like most Members of Parliament, are not as principled as you say you are!