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Re-writing history

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Nick Robinson | 17:48 UK time, Wednesday, 21 March 2007

Hey presto! With the last announcement in the last minute of his last Budget speech Gordon Brown has sought to re-write the history of the Brown decade at the Treasury and to wrong-foot the Tories for the next decade.

This chancellor's been called many things - some good, some bad - but rarely has anyone called him a tax cutter or a tax reformer.

His hope is that today's speech will change that. No chance, say his enemies pointing out that what "the Gord giveth the Gord taketh away". And it's true that he had no money to spend today.

Had it not been for these tax changes we would have been focussing on the pain caused by the tightest public spending figures for more than a decade.

Instead Gordon Brown delivered a Budget that reminded me of the great pre-election tax cutting Budgets of old. A leadership election looms. Then, who knows, could he be tempted for an early dash to the polls?

Comments

  • 1.
  • At on 21 Mar 2007,
  • derek barker wrote:

Yes Nick, you can't hold government without a public mandate.I thought it very interesting to listen to E,Ball's today,its a tough world and you got to be tough to live in it!type reply to the budget with a twist of resignation that the stage is bare and the curtain is coming down on new labour.

  • 2.
  • At on 21 Mar 2007,
  • Ed Plant wrote:

Sorry Nick, you must be commenting on another budget in a parallel universe. Tax has basically risen for pretty much everyone - do the maths. It's the usual smoke and mirrors we've come to expect from Brown!

Are you hoping to stand for Labour in a forthcoming election by any chance?

  • 3.
  • At on 21 Mar 2007,
  • Annek wrote:

Gordon Brown has fooled no-one. We have already worked out that the rise in national insurance and numerous other stealth taxes will soon wipe out any gains. If anything he has only increased cynicism.

It is a different issue which concerns me right now. Why did no-one in the media have the guts to run a headline which highlighted tax increases?

  • 4.
  • At on 21 Mar 2007,
  • Ben Archibald wrote:

What an embarrassing blog entry. Perhaps you should be given red pom-poms and taught a few rhyming chants, to cheerlead the most smoke-and-mirrors budget in Gordon Brown's eleven year repertoire. There's nothing new in what Gordon Brown has done; he just learned a few tricks from Steve Jobs' Ipod launches. You've been spun.

  • 5.
  • At on 21 Mar 2007,
  • Mike wrote:

He's not a tax cutter, he's a smoke and mirrors tax shifter.

Small businesses, charities and low income earners are not seeing the funny side of this budget. Ah well, who cares? The city's happy.

  • 6.
  • At on 21 Mar 2007,
  • nadders wrote:

Its a typical nuLab new story, with spin to the fore. ´óÏó´«Ã½ headline, "2p cut in income tax", rather than the equally correct "10p rate doubled to 20p". He even suckered Cameron into believing it was a real tax cut.

If with all the months of prep he's had for this day, all he can come up with a nice set of smoke and mirrors, nuLab do have a real problem. Typically the bad news on council tax revaluation was released at the same time to cover it up.

So assuming he is the next PM, come election time the vast majority will have seen their taxes at best the same, but for most worse, interest rates up, and nulab if elected, bringing in massive council tax rises, identity cards, spy in the sky for cars etc etc.

Who would want to be a nuLab MP then?

  • 7.
  • At on 21 Mar 2007,
  • John Galpin wrote:

Wrongfoot the Tories???

Sorry Nick but I really can't see this at all.

Most "middle class" people aren't going to be persuaded by this when they know that they are already paying hugely increased taxes. Anyway the fundamental issue for many of them isn't the tax in itself it's the hugely incompetent way it has been spent that really irks them. If any of them were so over budget on projects, so late in delivering objectives, so poor on delivering to the agreed quality standards, so derelict with their companies money they all know they would be fired on the spot or bankrupt if it was their business. No this cut will not impress "Middle Britain" one bit

Instead, Brown has handed the Tories a golden tax cutting opportunity. First he has totally upset a tranche of his own "natural supporters" on low incomes by removing the 10% rate and Cameron has a real chance of appealing to at least some of them by promising to restore it!!! What would Brown's response to that be?? I'm not even a conservative and I'd cheer!

If Michael Foot's election manifesto was the longest suicide note in history, as Dennis Healy called it, then this Budget must be the most inept.

  • 8.
  • At on 21 Mar 2007,
  • MR NOEL WHITELEY wrote:

DUE TO THE TAX CHANGES IN THIS BUDGET
NEXT APRIL MY TAX BILL WILL INCREASE

MY INCOME IS 8000PA.AT THE AGE OF 62
AT PRESENT MY MONTHLY TAX BILL IS £34 PER MONTH NEXT YEAR IT WILL INCREASE TO THE REGION OF £50 PER MONTH

SO THIS IS THIS GOVERMENTS IDEA HELPING THE LESS WELL OFF

  • 9.
  • At on 21 Mar 2007,
  • Sean Kelly wrote:

After Brown's speech Cameron was making a rebuttal that looked at "The Devil in the Detail" which looked at some of the Brown's outlandish claims.
It was rather entertaining but more importantly rather telling until it was cut off.
In the interest of balance should I not be allowed to see the opposition's viewpoint in full as well.
Why go back to the studio for a summary of what I have already just heard from the Chancellor.
´óÏó´«Ã½ used to be respected the world over for it integrity and balance something which sadly diminishes by the day.
I thought you'd had the licence fee settlement? Nothing to gain by sucking up to this government now surely?


  • 10.
  • At on 21 Mar 2007,
  • Colin Soames wrote:

>a Budget that reminded me of the great pre-election tax cutting Budgets of old

But it isn't real is it - it's another of his con tricks to bamboozle the public while he's filching more of our cash by stealth taxes.

  • 11.
  • At on 21 Mar 2007,
  • Mike wrote:

Yawn.

He is not cutting taxes - he is shifting them. In fact, the tax revenue is going to INCREASE.

Spin, spin, spin.

Why doesn't the ´óÏó´«Ã½ just rename itself as the Nulabour Broadcasting Corporation?

  • 12.
  • At on 21 Mar 2007,
  • Carlos Cortiglia wrote:

Dear Mr Robinson,

The former Governor of the Bank of England, Lord George, made interesting comments regarding the policy on interest rates and house prices followed by the Bank of England to avoid a recession. He said that the Bank of England had kept interest rates low and had turned a blid eye concerning houses prices, even taking the risk of creating a massive private debt, to avoid a sharp fall in consumer demand. In view of the present circumstances regarding bankruptcies, repossessions and insolvencies, Mr George's comments only serve to confirm my suspicions that for more than a decade Britain has survived mostly by creating private debt and thanks to speculation in the housing markets. This is extremely serious, especially given present levels of debt. Given the unsustainability of such a policy, it is reasonable to believe that the British economy is based on very shaky grounds and the said economic boom is no more than a bubble waiting to burst.

  • 13.
  • At on 21 Mar 2007,
  • Andrew wrote:

'An early dash to the polls?'.

By God, we all hope so.

The sooner this country's rid of these charlatans the better. Things, can only get better . . .

  • 14.
  • At on 21 Mar 2007,
  • Simon Field wrote:

Very perceptive. I think Labour is quite likely to go to the polls during Brown's honeymoon period, before everyione realises just what a frightful prime minister they have been saddled with.

  • 15.
  • At on 21 Mar 2007,
  • Bernard from Horsham wrote:

WHAT tax cuts??? , there aren't any. It's a broadly NEUTRAL budget. The 2p tax cut is an illusion for the majority of taxpayers. It's almost completely offset by the abolition of the 10p band. Anything taxpayers gain will be offset by the Council tax increases, and this illusory budget doesn't take effect till 2008/09 anyway, If I'm reading it correctly.
Let Brown dash for the polls, he would be crushed by those stampeding to vote Conservative methinks.

  • 16.
  • At on 21 Mar 2007,
  • wrote:

Too little, too late. What irks me the most is that the Scots want devolution yet still want to run our parliament. They can keep their parliament and Gordon is welcome to stay for as long as he wishes...

  • 17.
  • At on 21 Mar 2007,
  • Paul Richards wrote:

I saw your report on the news today and I find it shocking that you can say something along the lines "of course he's got the media focused on the tax cut instead of the reality of no increase in expenditure and no major net tax decrease". Who are you, as political editor of the ´óÏó´«Ã½, if not the media? Why can you not report the reality as your main headline instead of playing into the Chancellor's hands and having the 2p cut as the focus?

  • 18.
  • At on 21 Mar 2007,
  • Diane from Liverpool wrote:

I am self employed trying to run my own business. Last year my net income was just £6500. Suffice to say I am disgusted with this budget. The 2p basic rate tax cut is being funded and hurting the people who need help most. Those on low incomes that saw a benefit in the 10% rate, that is now being abolished. Am I right in saying he is lower the corporate tax rate for large businesses but raising it for small business. Yet again those that can afford things least paying the most.

This was not a great election Tax cutting budget.

  • 19.
  • At on 21 Mar 2007,
  • wrote:

I wonder if the FSA would sanction the management, strategy & tactics of The Treasury under Gordon Brown, if this New Labours finance department, was a commercial trading entity.

Blair (as PM) lost trust given proven spin on truth (policy & decisions & actions) - its his legacy.

Brown (as Chancellor) has already lost trust given his proven method of dubious number crunching - his 10 year at the helm is proof enough.

vikingar

  • 20.
  • At on 21 Mar 2007,
  • Charles E Hardwidge wrote:

I posted a critical comment in your earlier thread on Gordon Brown’s suitability for the position of Prime Minister but would like to take a more rounded approach on his years as Chancellor, as his period in this role has been quite successful.

Some people do complain about the burden of tax, the smoke and mirrors approach, and waste but the approach was effective after a time of massive underinvestment, stealth tax avoidance, and asset stripping by the privileged.

I’m not sure this is the best way to carry things forward. Less confusing clutter, and moderating selfishness are key goals I’d like to see a new government take. While it may be Gordon Brown’s last Budget, I certainly hope it is the last of its kind.

  • 21.
  • At on 21 Mar 2007,
  • Anna wrote:

Stampeding to vote for the Tories?
People have short memories then. It's because of chronic underfunding under eighteen years of Tory rule that the NHS has needed so much repair. Brown's budget may have done little to help the underprivileged, but don't let's make out that the Tories are friends of the working classes. Surely David Cameron has not done that good a PR job?

I trust Gordon Brown far more than I could ever trust the Tories. But then, I remember the Thatcher era and what Thatcherite policies did to industrial communities. The very idea of a stampede to vote for wolf-in-sheep's clothing Cameron makes my blood run cold.

  • 22.
  • At on 22 Mar 2007,
  • Michael (Cornwall) wrote:

Some taxpayers will gain and some will lose but charities, including Churches,will suffer because of the reduction in the standard rate of income tax. A donation of £100 (net of tax) will attract a Gift Aid refund of just £25 instead of the present £28-20, a significant reduction in income.

  • 23.
  • At on 22 Mar 2007,
  • Raymond Wilson wrote:

Why would people be stampeding to vote Conservative? Those morons were in power before remember? Just as pathetic, incompetant and inept as the current government - remember?

Lets not go full circle. Everyone vote for your corresponding nationalists and lets give some new clowns a chance to toy with peoples lives. At least it will be different!

  • 24.
  • At on 22 Mar 2007,
  • E Welshman wrote:

How do you have the nerve to spout such Labour propaganda when you know what you are saying is so wrong ?

Don't you have any feeling for the low-paid workers, small businesses and charities who are going to suffer from the effects of this budget.

You should get out of the ´óÏó´«Ã½ and get a real job like running a small business for a few years, and then play back the nonsense that you have just uttered. You will then perhaps realise what offence you have caused to those who are really trying to make it in life.

  • 25.
  • At on 22 Mar 2007,
  • Gareth Beal wrote:

It's astounding how many of you are already using these new sayings like "smoke and mirrors". What on earth does that even mean? I'm also still trying to work out what a "Stealth Tax" is. Presumably it's a saying people use to describe an indirect tax, although someone was saying that N.I. was a stealth tax a few posts up, and that is a direct tax for goodness sake.

Less tax for the poor, more tax for the rich. Seems pretty fair to me. He's technically right in saying that the base rate is the lowest it's been for 75 years, it's just most people aren't aware of what the definition of the base rate actually is.

The so called "council tax revaluation" is a merely report into what could be done in the future.

It's astonishing how little everyone reads into articles and just goes by what the Daily Mail headline says.

Another thing quickly, the MPC has no mandate to alter house prices whatsoever. It shouldn't even consider them when discussing interest rates. The only thing it should be concerned with is keeping CPI inflation between 1% and 3%.

  • 26.
  • At on 22 Mar 2007,
  • Chris Wills wrote:

Please Gordon give us some credit. We the public are not that stupid - you have given us 10 previous examples to prepare us for such trickery so don't be so niaive as to believe that your cheap party trick will fool us. The Penn & Tellers of the financial world have already seen through the sleight of hand and your momentary (and somewhat childish) smug grin belittles you. As your 'mate' Tony is beginning to find out 'legacy' is determined by the long term effects of your actions not a Sun newspaper headline, so grow up and start acting like a PM and not some disruptive child.
Also it won't be long before political commentators realise that you are tying the hands of any future patsy that you put in as Chancellor - is that why you recalled Gladstone being Chancellor and PM at the same time - is that what you want to be?

  • 27.
  • At on 22 Mar 2007,
  • Brian Spencer wrote:

Nick, I think previous commenters have said it all. I can't believe that you are so in awe of Gordon Brown for his 'conjuring trick'. Most people surely will see that this is not really a tax cut at all.

Up till now I've given the ´óÏó´«Ã½ the benefit of the doubt as to their neutrality but having seen Cameron's telling response cut off in mid stride I'm beginning to wonder! For floating voters such as myself it would have been much better to have heard both sides in total so to speak.

As to Gordon calling a snap election assuming he's the next PM I thought that the Labour Party were bankrupt (in financial terms as well as ideas). Of course there are plenty of things that MIGHT blow the politicians off course at any moment such as someone being charged under the cash for peerages investigation for instance. Then who knows what might happen in Afghanistan and Iraq in the next few months. Interesting times indeed!

  • 28.
  • At on 22 Mar 2007,
  • Peter C wrote:

Nick

I do hope the ´óÏó´«Ã½ bosses havn't got to you as well !

In the past you have frequently been accused of being anti Labour by some of your regular bloggers - perhaps you are simply trying to balance your books!

On a more serious note I do agree with Sean Kelly about the ´óÏó´«Ã½ coverage - all too often they cut short, or edit out, the views of the opposition parties. Goodness knows why the ´óÏó´«Ã½ replaced the usual Daily Politics team - who have become suprisingly more even handed in covering the parliamentary scene in recent times - with David Dimbleby who , even with all his style, has long since lost his political
sharpness and neutrality.

That quality is something that has become the stamp of your own reporting style - something I hope you will never compromise !!

  • 29.
  • At on 22 Mar 2007,
  • Ian Barlow wrote:

I am appalled at the way the ´óÏó´«Ã½ has reported this "budget". Cut in income tax? Why don't you report the facts? It doesn't take effect until April 2008? Tax up for gas guzzlers is complete twaddle. My ordinary mondeo does 30mpg but would be classed as a gas guzzler? If it were new enough. The higher rate of VED only applies to vehicles registered after March 2006. REPORT THE FACTS.

The rise in petrol duty cancels out the 2p income tax cut!

And someone explain the basics to Gordy - petrol is price inelastic - GCSE economics tells you that..putting up the price will not reduce demand.

At the end of the day it was a nothing budget. Most of the important changes don't take effect for at least 12 months. Bring on an early election and these could be reversed by a deliriously happy G Osbourne!

  • 30.
  • At on 22 Mar 2007,
  • Paul wrote:

Well what a load of bull.
I'm a Police Constable married with 4 children under 4. My wife is a Health Visitor looking after our children on a career break.
I earn £36000 a year and will be £500 worse off every year according to the Nulabour Broadcasting Company tax calculator. We only just got our 3% pay rise by the skin of our teeth in September. Labour said it was too high and tried to cut it after a formula that has been in place for 30 years comparing our rise to every other public sector worker to keep us in line because we cannot strike.
If I'd of only had the 2% rise Labour wanted to force on us then I'd have been £860 worse off! Wonderful. Birth rates are dropping and this is a family friendly budget? For what family is it friendly, those on benefits?

  • 31.
  • At on 22 Mar 2007,
  • wrote:

Just done my sums.
A couple needs an equally shared total income for tax calculation
(after deduction of allowances)
of over £37000 to break even.
Based on our last declared turnover,
He's taking an extra £5 a month.

He's also removed the 'soft' start to taxation, which increases dependence on the complex system of allowances and tax credits, thus incurring extra admin. costs.

Socialist? I don't see it - he seems to like making people beg.

  • 32.
  • At on 22 Mar 2007,
  • robin wrote:

what on earth are you talking about, Nick? Have you and The Sun signed a 'save Gordon' pact? You, Gordon and The Sun sre seriously delusional if you think this budget is going to win people around.

Why does the Health Service need even more money? Wasn't £97bn enough? This is three times what the Tories spent on it yet nothing seems to have changed except salaries. Likewise on education...why does everyone have to stay at school until they are eighteen? What's wrong with people who want to go train to be a plumber or an electrician? We are being governed by intellectual snobs who think anyone without a higher education doesn't deserve a look in. What kind of society is this going to create? It's one where people have no respect for each other and this is not how I grew up.

What is a Labour party doing increasing taxation for the poor? This budget is merely another indication that the government has completely lost the plot, doesn't know who or what it stands for and is spinning out of control.

  • 33.
  • At on 22 Mar 2007,
  • Shugmeister wrote:

Early election, that would be interesting.
Do I vote for a devious, manipulative, "Stalinesque" character. One with no real policy substance, or for a party that wants to give prisoners the vote!
Some choice.

  • 34.
  • At on 22 Mar 2007,
  • John Turner wrote:

Nick ,I guess you had not read the detail before you wrote your blog.In reality Gordon Brown has given us nothing as usual, and will always be remembered for spin and stealth taxes and not for tax cuts.

  • 35.
  • At on 22 Mar 2007,
  • Chuck Unsworth wrote:

For the gullible this was, at best, a neutral budget.

The political question is 'what has this done for Brown's personal credibility and his chances of winning a General Election?'.

You can see from the majority comment here and virtually everywhere else that the answer to that is 'Nothing at all'.

If anything it has confirmed the almost total public mistrust of Brown and his New Labour party.

I think the majority of electors' attitudes to a General Election is 'bring it on just as soon as you like. We are ready to retaliate right now'. The next election will be characterised chiefly by a vote 'against' New Labour. Anything but Brown or Blair, or anyone else who has been tainted by their slavish adherence to 'New Labour' and its profound mendacity.

  • 36.
  • At on 22 Mar 2007,
  • Reading Resident wrote:

I thought reforms were steps taken to achieve positive change?

This is a really bad Budget. The sleight of hand means low earners will be left worse off in income tax terms. It just adds to the traps set up within the tax credit system in its effects on the poorest.

The pensioners' tax threshold announcement will get a reaction of 'I won't be around to get it'.

In short, dishonesty is the watchword of this Budget. Cameron has said nothing of substance and the job of serious opposition has been left to the Lib Dems again.

  • 37.
  • At on 22 Mar 2007,
  • David Simmons wrote:

Well, you should have got the message from the preceding postings, Nick - assuming you read them..! My particular point is this: despite he himself having put the arrangement in place ten years ago, the Chancellor never misses an opportunity to crow about how low interest rates are. Can someone explain to him - Mr Brown, they are NOTHING TO DO WITH YOU..! He might just as well say - 'Under this Labour government, grass has been growing at a uniform rate..'

  • 38.
  • At on 22 Mar 2007,
  • AMJ wrote:

Reading the comments on this weblog it seems that most don't consider themselves stupid and can see through Mr Brown's game, so Mr Cameron must be really stupid, I heard him said 'he's (Mr Brown) tax cutter now' what a plonker.

  • 39.
  • At on 22 Mar 2007,
  • Peter Wells wrote:

I do believe that Cameron and his university boat crew set spend most of their lives lambasting websites such as this to give the impression that the majority of us do not appreciate the good job he has done over the last ten years in managing the economy.
Sorry. The Chancellor's role is to manage the economy. That he has done. So, why the surprise when he comes up with measures to raise money? Do we want improving services? Do we want to cushion the poor from subsistence wages? Everything comes at a price, and Brown's efforts to simplify our tax system are to be welcomed, along with his intention to invest in public services.
I know it is difficult for the Tories to stomach, but hey Cameron can always spend some more time in front of his mirror thinking up new ways to part his hair!

  • 40.
  • At on 22 Mar 2007,
  • Daniel Levene wrote:

On what is likely to be the last budget speech proposed by Gordan Brown, I believe the underlining change in his approach to cut taxes, is nothing other than to build on the low support for the labour party at present, and a successful reign in power as Prime Minister.
However, this act shows he will not be the 'peoples' prime minister that we have been hoping for; this spledge is nothing more than an 'illusion' to save our money. Although he has cut taxes, and again plans to in the future years, he sneakily has accounted to almost balence this loss, by reclaiming money from our pockets in the form of other taxes. He simply takes with one hand, and snatches with the other. In some cases depending on your position among society, this change will mean you are paying more money to the government - this applies to about two million of the population.
Do not be fooled by this change, as it is only an opportunity to gain some 'positive' publicity for the labour party. I believe it is vitally important as Mr. Brown does, to benefit the poorer community and those single parents among us, as well as the many other unfortunate groups. However, I am unsure if these decisions were made for the right reasons, and the not the wrong ones, so he can just earn the respect of the public.

  • 41.
  • At on 23 Oct 2007,
  • james wrote:

More tax to supplement the poor. this may sound somewhat controversial but coming from a relatively poor background I believe I am entitled to say it. Why should I put myself through university to get a better job and make a better life for myself to supplement those too lazy to get off their backsides and work? If i earn a higher wage, it's because I've worked damn hard to get there. I dont mind paying more tax to improve services etc. but the amount of tax money given out as benefits to wasters is rediculous!

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