Gordon Brown’s last budget
This Wednesday what will surely be Gordon Brown’s last budget is to be presented to Parliament. Interestingly in the run up to the budget Sir Ronald Cohen, one of Gordon Brown’s closest allies in the city, is warning of the growing gap between rich and poor in Britain.
Meanwhile Anthony Giddens, one of the architects of the new Labour philosophy on the economy, has warned Gordon Brown that to increase the tax burden will result in Labour not being re-elected at the next general election. I agree with that though I happen to believe that Labour will lose the next general election in any event, but raising the tax burden further, I think, would certainly guarantee that.
Gordon Brown will surely signal a shift from direct taxation to green taxation. This is something that the Conservatives have been urging and it would seem extraordinary if there is not a shift in this direction.
There are also reports that the government’s review of local government funding, long awaited (the Lyons review), will be published on the same day as the budget is announced. If that is the case it will truly be extraordinary as it will be seen as what it is, an attempt to detract attention from the budget.
The Sunday newspapers are also full of talk of Gordon Brown trying to lighten his image. Once memorably put by Paddy Ashdown in a description of the sort of Britain that Gordon Brown may lead “A control freak’s Gormenghast where no light would shine, owls will hoot and happy hour would be abolished”. There is more than a hint of this in the Chancellor that we have all got to know and no doubt desperate efforts are being made now to alter and lighten that image.
