Could this be true?

I understand that page two of The People suggests that the great tax-riser Gordon Brown is about to announce a 2% cut in the basic rate of income tax.  It may be a rubbish story but would be yet another example of the  fashion for political cross-dressing.

The hint was certainly in Jeff Randall's Friday column in The Telegraph:

"Grant Thornton, the financial advisers, calculate that corporation tax is expected to account for 11.4 per cent of all Exchequer receipts in 2006-07, compared with 8.2 per cent three years ago. In a CBI poll of 100 executives, tax was a significant factor for the 20 per cent of companies that had shifted operations abroad. You don't have to go far to escape Britain's corporate rate of 30 per cent: in Ireland, it is just 12.5 per cent.  Here's the punch-line. Grant Thorton believes the situation is now so serious that, to reposition himself as business-friendly, before moving into Number 10, Brown could signal a cut in corporation tax in next week's Pre-Budget Report. "It's on the radar," Grant Thornton told me.  Oh, the irony. Brown, who has crushed us with billions of extra tax, ends up taking the initiative as a tax cutter. Business applauds, election is won, leaving desperate Dave and gentle George as the high priests of high taxes, wondering where it all went wrong."

Comments

[Ted]

Remember Gordon is electioneering - for both Scots/Welsh Assemblies and as a stepping stone towards the glorious first 100 days. So he'll adopt a popularist stand in 2007, following year Prudence may make an appearance then it's 2009 and Euro & possibly GE so another budget with giveaways & stealth taxes.

Skimmed the on line press this morning and read this one - obviously I only check the People for its political stories :-)

[Paul Kennedy]

Always worth remembering that many voters fall for these short term, headline grabbing, tax cuts, alas most then fail to see the more substantial and "hidden" increased ones.

[Opinicus]

How does one vote Labour?
Its only recently I found out one could.
It looks as though I might have to now.

[Josh]

It looks like generally the Conservatives have the right ideas but at the wrong time. They are always a year or two too early. The success of New Labour comes from identifying a sensible Conservative policy and picking the right moment to apply it.

[Scotty]

"The People suggests that the great tax-riser Gordon Brown is about to announce a 2% cut in the basic rate of income tax."
Why is anyone surprised? I remember a journalist (conservative leaning I think) who predicted that a few months ago. It is now annoying me because I can't remember who it was!
Gordon Brown loves to micro-manage and control. I have no doubt that some of his "budgeting" over the last couple of years has not been for any other reason than his own political ambitions rather than dear PRUDENCE.
And before the tax cutting army on this site get too excited and start demanding a similar line from our team or complaints about it not already happening, just remember the economy and stability!
Record debt and house prices need taming not something that will accelerate an already worrying trend.
If he has a few extra quid up his sleeve could he bung the soldiers in Iraq and Afghanistan some decent armoured vehicles and a few helicopter's!

[Yet Another Anon]

It wouldn't surprise me in the least, he might even extend the starting rate of Income Tax to cover more people who would otherwise be paying the Basic Rate and probably announce some extensions of Tax Credits I imagine and Family Benefits.

[Chris Palmer]

How kind of Mr Brown if he were to do that. It would almost be like someone defrauding you of thousands of pounds over 10 years, and then defrauding you - but by no quite as much.

[Daniel VA]

I think I read somewhere that it would be paid for by green taxation.

Our penny-pinching Chancellor is also a policy-pinching electioneer as well, remember?

[Cardinal Pirelli]

So he's starved our forces of equipment, refused to help a crumbling NHS and bled us dry in stealth taxes all so that he can claim to be cutting taxes to win him an alection?

Rather too transparent Mr Brown, do you really imagine that the voters won't put two and two together? I don't think any conservative would be taken in for a start. Lib dems, well, they seem to want to cut taxes now so maybe.

[Ted]

Cardinal he's also refusing the HO cash to build prisons - we do all sound a bit Kinnock-like though asking how he can cut tax while all about is crying out for funding...the answer of course is that taxation as proportion of GDP will not fall, while we all look in wonder at the "Tax Cuts" he'll be rifling our pockets.

[Paul Kennedy]

No Cardinal, his sin was pumping too much money too fast into the NHS in the first place, when it was not properly organised to use it effectively, and hence the problems it has now, which will not be resolved by throwing yet more money at it.

[Cardinal Pirelli]

Exactly Paul, poorly targetted resources and the usual 'throw many at the problem' attitude. His refusal to accept that just compounds the problem.

[Josh]

Indeed. And that is how DC should attack Blair the next time he goes on about all the funding the Labour government have put in. It's one thing to throw money at a problem. It's another to invest money to solve a problem.

[TomTom]

It's one thing to throw money at a problem. It's another to invest money to solve a problem.

Yes but with a rapidly growing population and unrestricted immigration demands on healthcare are increasing faster than budgets.

There are rumours - perhaps true - that at least 200 Zimbabweans are on £10.000pa retrovirals in one health authority alone that is £2 million a year - so money can disappear rapidly when you add in PFI hospital buildings, fees to McKinsey and Bain and Booz Allen; and incidences of TB in Inner-London boroughs at African levels..............plus grand projects like the NHS Computer Debacle.

The grandiosity of our political elite is on a Soviet level of self-deception

[Michael McGowan]

Do you really think that Cameron is likely to change any of this for the better? How can he possibly do so when he is wedded to an exclusively taxpayer-funded NHS; Labour spending plans and effectively unrestricted immigration?

[Adam]

So, just before embarking on what is touted as one of the toughest Comprehensive Spending Reviews since 1997, Gordon Brown is poised to announce a 2% cut in income tax and halving of corporation tax?

Pull the other one - it's got bells on.

[TaxCutter]

Brown may well cut corporation tax, where most educated criticism is aimed and bring in a few business friendly measures, originally found in the Tax Reform Commission's report. Never underestimate New Labour's ability to steal Tory clothing

[tired and emotional]

Does this mean that the long-dreaded revaluation of council tax bands is upon us?