Showing posts with label brown still around. Show all posts
Showing posts with label brown still around. Show all posts

Gordon Brown - a reminder

Our unelected Prime Minister is not going to give up without a fight. Day after day, he tells us how he saved the economy, how he's a safe paid of hands with our finances, how he's going to 'keep on going', 'getting on with the job'.

Let's just have a look back at some of the ways in which the monocular mentalist has 'helped' us all, shall we?

Taxing dividend payments: Before 1997, dividends issued by UK companies and paid to pension funds were tax-free. Not any more, decided Brown. Pension funds holding the cash that we all plan to use for our retirement have lost around £100 billion over the last 12 years. Now that's a stealth tax.

Tax credits: Millions of low-income families have had to pay back the Treasury after receiving too much money in tax credits, putting them under huge financial and emotional strain. Meanwhile, 40 per cent of workers and families who deserved tax credits left billions of pounds unclaimed in the 2008-09 tax year for fear of being chased for the cash later on.

The £10,000 corporation tax threshold: In 2002, Gordon Brown introduced a new tax regime to help small businesses. He announced a new zero per cent rate of corporation tax on profits below £10,000. It was designed to boost the ability of small businesses to grow and prosper. It didn't quite work out this way. It became advantageous for sole traders such as taxi drivers or plumbers to turn themselves into limited companies to take advantage of the new rules. A Treasury Minister later commented that "the Government did not realise how many people would engage in abusive tax avoidance", despite the fact that it was "blindingly obvious" to tax experts "within 5 seconds" of the budget announcement that this would happen.

Abolition of the 10p tax rate: Accountants calculated that the scrapping of the 10 per cent tax rate, coupled with the increase in the proportion of tax credits withdrawn from higher earners, would leave 1.8 million workers earning between £6,500 and £15,000 paying an effective tax rate of up to 70 per cent.

50 per cent tax rate: Robert Chote, director of the Institute for Fiscal Studies, has said the tax hike which heralded the end the new Labour may actually end up losing the Government money. "If you look at what happened when higher rates were last changed in the 1980s, that might lead you to suggest that such a move might actually lose you revenue, rather than gain it, as people actually declare less income for tax," he said.

Cutting VAT: "It would be funny if it wasn’t so serious," said a tax accountant when asked about the Brown-Darling brainwave to cut VAT by 2.5 percentage points. As a nation of shoppers, rather than shopkeepers, a chopped down sales tax sounds like a good idea, providing a vital boost to hard-pressed families at a time of financial hardship. There were two problems. It costs £12.5 billion a year and it has made little discernable difference to those hard-pressed families because it is shopkeepers, rather than shoppers, who have pocketed much of the benefit.

And, of course, the grand finale, the piece of resistance:

Selling our gold: In May 1999 Gordon Brown had a plan to sell some gold. There were two problems with this, which concerned his economic advisers deeply. The price of gold had slumped after a decade of stagnation, but was likely to increase in the proceeding years. Added to this, the announcement of a major sell-off would - duh! - drive the price down further. Never mind, said Broon. Experts believe that the poorly timed decision to flog our national treasure has cost us all around £3 billion.

And that little lot is just a selection, picked from a much, much longer list of gaffes. For fuck's sake.

We might get rid of him - please? - soon, but the hangover will take years to get over.

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Not that one

So, the death of a Labour leader and lifelong politician. And the tributes and rememberences are pouring in.

No-one wants to immediately speak ill of the dead, but many tributes were tempered with a realistic look at the Labour leader's deficiencies.

As the Mirror pointed out

"He wasn't blessed with the imposing stature or suave manner of a natural leader".

Senior Labour figures - carefully unnamed - were quick to admit that:

"..his spell as party leader .. was not a happy one,"

He was always there on the frontline, beside the Labour Prime Minister, fighting - unsucessfully - to prevent the country from sliding into the recession and discontent that a Labour government always eventually brings.

He had some radical ideas for the economy: a big expansionary programme to lift Britain out of recession was his own idea, as was the idea that this had to be paid for by massive increases in borrowing. Not everyone agreed, but he was adamant.

He wasn't always best for his party either - indeed, there were many who believed that he made Labour almost completely unelectable.

Another Labour leader, Lord Kinnock, said - in his traditional windy manner - that..

"..the best that could be said of his leadership is that the outcome could have been even worse, the defeat bigger and the splits deeper."

Despite his burning ambition, he was never actually elected as Prime Minister. As Tony Benn said:

“I know he did not win the election, but the fact that he became leader ... puts him in the top list of figures in the history of the party.”

Yes, we may not have liked Gordon Brown but ... wait ... what? Who? So not...?

Oh shit. The wrong one..

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