Teaching Comparative Government and Politics

Thursday, March 22, 2007

Budget as a policy issue in the UK

Gordon Brown wants to succeed Tony Blair as Prime Minister, and his latest (and probably last) budget proposal seems likely to pave the way for that transition. This report is from The Guardian (UK).


Brown springs budget surprise

"Gordon Brown pulled a big surprise today in probably his final budget as chancellor, cutting the basic rate of income tax by two pence from next April.

"Delivering a budget to 'expand prosperity and fairness for British families', the chancellor also announced big increases in education spending and higher tax rates for the most polluting cars...

"Perhaps conscious of his reputation as dour and controlling, Mr Brown's demeanour throughout was cheerful, and he cracked several jokes - calling colleagues 'comrades' in a self-deprecating reference to this week's accusation of his Stalinist tendencies.

"The Conservative leader, David Cameron, taken aback by the tax cut, accused Mr Brown of copying the Tory mantra of 'sharing the proceeds of growth'..."


Michael White's op-ed analysis in The Guardian suggests a bigger reason why Brown might begin his tenure as PM under sunny skies: Lucky chancellor has beaten Labour's economic voodoo

"Whatever happens to Gordon Brown from here on he has one major achievement to his credit of historic proportions.

"He has been chancellor of the British exchequer for ten years of steady economic growth. Barring an economic tsunami between now and late June - anything is possible - he will move into No 10 as one of those chancellors who (as he once put it) 'got out in time', not in disgrace.

"In doing so he will have beaten the voodoo which has haunted all Labour governments since 1924: the fear of economic failure, of debt, devaluation of the pound, of rising unemployment and public spending cuts..."


A follow-up from the BBC suggests further dimensions of the budget and attending policies. Isn't that just the way things go. Simple, single-issue news report leads to a multitude of other complex issues.

Brown denies Budget 'con trick'

"Chancellor Gordon Brown has rejected Conservatives' claims his Budget tax changes amounted to a 'con trick'.

"Mr Brown cut 2p off the basic tax rate, but he also axed the 10p starter rate, and changed the National Insurance limits, leaving few people better off.

"The Tories said lower earners would pay more income tax, while the Lib Dems say 'the poor are subsidising the rich'.

"But Mr Brown said the reforms had simplified the system and were 'in the best interests of the country'..."


The Budget at-a-glance from the BBC

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