I’ll join the chorus of approval for Chancellor Alistair Darling’s decision to increase tax allowances for basic rate taxpayers. I suppose the Mrs and I should declare an interest (or rather 240 of them). But I do genuinely think that this is good news for low and middle income Britain. It is also progressive and even (mildly) redistributive in a gentle “don’t scare the horses” New Labour way.I don’t think that there has been any conversion on the road to Damascus, but the government has been given a bloody nose by normally loyal backbench MPs not the “usual suspects”. What does this mean? Gordon Brown is not stupid. I think he will take account of his backbench MPs and realise a mistake was made over the abolition of the 10p rate and learn from it.
Mike Ion talked a lot of sense on Monday about how folk have short memories. Less than 12 months ago the Tories were disintegrating over academic selection and Labour was 14% ahead in the polls. Two years is a long time in politics. This was before today’s announcement on basic rate tax.
One positive consequence could be that in the in the face of a resurgent (for now) Tory Party, is that the Government has realised that it needs to capture low and middle income Britain. Now, I would argue that this would also involve delivering on rights for agency workers, public sector pay and financial security for the self-employed etc.
While the Government may have realised in a period of low wage growth and relatively high inflation for fuel and food that they need to concentrate on making sure that low and middle income Britain release that the Labour Party has their interests at heart. They must find ways to put real money into their pockets and purses before 2010.
Will higher rate Britain (not all of course) vote for the Tories anyway now they appear to have a “respectable” One Nation toff as leader?
