Posts Tagged ‘Tax’

Labour, the Lib-Dems and now the SNP all have at least one thing in common, they all seem to have the Tories directly in their crosshairs as the Tories seem to be under the most scrutiny and attack so far in the election campaign.

Of course none of this is a shock, it is only natural for the parties to have a go at each other, but what is striking about the attacks on the Tories is that it would normally be reserved for an incumbent Government, rather than the Opposition. The Tories are obviously the bookies favourite to win the most seats, at the very least the largest number in a Hung Parliament, so they are seen as the biggest threat by all of the parties.

Labour is obviously going after the Tories on everything as their prime competition. The Lib-Dems are trying to impress themselves onto voters as the eligible kingmakers whilst protecting their own seats which is evidenced most recently by Nick Clegg launching a “VAT Bombshell” poster campaign focusing on the Tory tax scheme. Alex Salmond is also trying to scare voters away from voting Tory in Scotland by running with a line that the Tories will go on a “smash-and-grab” spree by reviewing £1billion worth of funding to Scotland.

The latest Lib-Dem attack on the Conservative tax strategy

Of all of the parties, this probably benefits Labour the most as a lot of the “attack-dog” work they would normally have to do is being done by the smaller parties on a far more targeted level than the Labour election war chest would normally allow. The Tories therefore have to spend more time defending their policies and ideas on a national scale as well as batting away attacks on a more geographically targeted scale. Labour, while still needing to point out their perceived flaws in Conservative policy has more of an opportunity to sell in their policies.

Whether this will make a huge difference on Election Day, we will only know on May 7 but what is sure is the Tories would like more scrutiny on Labour, rather than being almost constantly defending their own policies and agenda. Labour would therefore be enjoying the underdog status and it is well known this is a position where Brown feels very comfortable.

Cross posted with my personal blog.

The main points of the Budget as announced are as follows:

ECONOMY

• The economy is expected to grow between at 1 and 1.5% in 2010
• Growth forecast for 2011 revised to between 3% and 3.5%
• VAT, income tax or National Insurance to remain at present rates
• Borrowing will be £167bn this year - £11bn lower than the forecast of £178b
• Debt will be £100bn lower by 2013/14 than predicted at last year’s Budget
• One third of civil service jobs to be located away from London 

TAX:

• Stamp Duty threshold will be raised to £250,000 - nine out of ten first-time buyers will not be liable for Stamp Duty
• Stamp Duty on homes worth £1m increased to 5%
• The planned 3p increase in fuel duty will be phased - up by 1p in April, 1p in October and 1p in January 2011
• Alcohol duty will rise by 2% above inflation by 2013
• Duty on cider will go up by 10% above inflation from Sunday
• Duty on tobacco will increase by 1% above inflation immediately, then 2% in subsequent years
• Inheritance tax will be frozen for four years
• Tax agreements extended to three additional countries - Dominica, Grenada and Belize, to target tax evasion

PENSIONERS:

• The Government will consider scrapping the compulsory retirement age
• Pensioners’ higher winter fuel payment will continue next yea

BANKS:

• Everyone in the UK is to be guaranteed access to a bank account
• The Royal Bank of Scotland and Lloyds will lend £94bn to business - at least half to small and medium-sized firms.
• The Government will set up a Green Bank controlling £2bn of equity to focus on investing in greener, cleaner energy and transport

BUSINESS:

• Business rates will be cut for a year from October bringing a tax reduction for 500,000 small firms in England
• £2.5bn support for small business to boost skills and innovation
• Investment allowance for small firms doubled to £100,000
• £385m will be invested to maintain road network

FAMILIES:

• Families with one and two-year-olds will receive an extra £4 a week in child tax credits

More reaction to follow.