The Pre-Election Budget 2010- Preview
Well today is the day of the long-awaited pre-election budget. It is a budget presented in the backdrop of a slowly recovering UK economy, just weeks before a General Election. For both Labour and the Conservatives it is a chance for some heavy hitting and potential national poll gains.
Alistair Darling is undoubtedly in a difficult position for today’s Budget as the UK is recovering from a severe recession and is saddled with a heavy budget deficit. To reflect this he has said that today’s budget will be a ’sensible, workmanlike’ set of proposals.
This suggests there may not be pre-election giveaways, although there are some potential vote winning measures being suggested in the press. It is thought that the Chancellor will propose a halt in the rise of petrol duty and scrapping stamp duty on house sales above £250,000 as well as creating a £1bn green fund for nuclear and wind power investment.
In terms of difficult and potentially unpopular decisions Mr Darling is likely to announce the removal of tax credits for people earning above £100,000 and a freezing of all income tax bands, which will mean people pay more tax on their earnings. This comes on top of the 50p higher rate of income tax, which comes into force next month.
Ruder Finn will be looking out for key proposals as they are announced and you can follow this via twitter at @ruderfinnuk.
As a final comment on today’s budget I would suggest that the big question to bear in mind for this budget is: with a General Election just weeks away can the Conservatives effectively critique today’s budget and increase their poll rating, particularly on the economy, or will Labour come through this potentially tricky budget unscathed?
Tags: alistair darling, Budget, Conservatives, labour
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