26 January 2012

The yo-yo of 11 Downing Street

Yesterday, I suggested (rather frivolously) that, in the light of the contraction in gdp, the Chancellor might look out Plan B.  And, lo, my prayers have been answered.  The Independent reports:
George Osborne is considering tax cuts for low and middle earners in his March Budget in an attempt to kick-start growth after figures showed that the economy is contracting.
The Chancellor will consider speeding up the Coalition's plan to raise the personal tax allowance to £10,000 a year by 2015. The move would help families in the "squeezed middle" and enable them to spend more – in the hope this would get the economy moving again.
The reports remain a bit vague about how these tax cuts should be paid for, but let's not kick a gift horse in the teeth.

1 comment:

Anonymous said...

According to Cleggy in The Grauniad today, this is his idea which he did not clear first with No. 11. To be paid for by the usual closing of loopholes for the ultra wealthy... We'll see.