Chancellor Alistair Darling’s budget yesterday included one tax Continue reading
Tag Archives: Chancellor
Nicola Sturgeon shows the calibre of real leadership
On a day of apologies, Scotland’s Deputy First Minister, Nicola Sturgeon Continue reading
Scotland’s growth and UK fantasy money
Scots of all political persuasions are prey to the guerilla war Continue reading
Fine print of Westminster budget proposals threatens self-catering businesses
As they say, the devil is in the detail. Continue reading
Argyll & Bute Conservatives light candle for General Election advent
The annual Christmas Gathering of the Scottish Conservative Continue reading
Harrods now selling gold
If we needed any more proof of the lack of trust in banks, Continue reading
Labour’s closing down sale
In a fire sale in a buyer’s market, the UK’s Labour Government Continue reading
UK ‘divide and ruie’ strategy on the rejection of funding spread for new Forth Bridge project
Everyone agrees that a new bridge across the Forth is crucial to the development both of Scotland’s transport system and thereby of its economy.
Whatever one’s politics or one’s views on any particular issue, there can be no doubt that Scotland today has a Government that governs, that accepts responsibility for decision taking, that will face up to tough situations and that is building a strategic policy for the growth of the country.
There is every fiscal sense in Finance Secretary, John Swinney’s request to the UK Treasury to spread the cost of the new bridge over the next twenty years of Holyrood’s capital budgets.
In its rejection of the request, there were two responses from UK Treasury Ministers:
- Chief Secretary to the Treasury, Yvette Cooper, said: ‘The UK-wide public spending framework does not allow for bringing forward spending in this way’.
- Chancellor Alistair Darling described the Scottish Government as: ‘asking to borrow money from budgets that have yet to be allocated, over an extremely long period’.
Let’s take a sharp reality check here.
Alistair Darling and Yvette Cooper, with Prime Minister Gordon Brown, have committed the entire UK to a volume of borrowing debt never seen before in history. It will take, not just twenty years, but generations to repay and its impact on future budgets cannot even be guessed at
So talking about a ‘public spending framework’ in a context where the Prime Minister has thrown all frameworks out of the window is no more than robot-babble.
And talking about ‘asking to borrow money from budgets that have yet to be allocated, over an extremely long period’ is a very pale description of the fiscal burden the UK Government has now taken on.
These wafer-thin ‘defences’ for saying no should not be taken seriously for more than the twenty seconds it takes to see through them.
The real strategy is baldly seen in the Chancellors further remarks: ‘If you are contemplating large projects like this you do have to make choices’.
By rejecting the fiscallly responsible suggestion Holyrood has made, the Westminster Labour administration is obviously trying the tired old political trick of divide-and-rule. It is hoping to force the Scottish Government to take such choices and set Scot against Scot and Scots against their Government in consequence.
It is to the credit of the Scottish Government that it has not flinched from this. John Swinney has said that the bridge must go ahead and that other projects will have to be prioritised.
Bridges cannot be built quickly. The future of Scotland’s economy depends upon the main infrastructure being fit for purpose and this work has to start now. This affects all Scots, wherever they live in the country. It would be good to see Scots resisting being made pawns in a bigger game by refusing to have their local territorial fears set against the larger national interest – and supporting the bridge project.
U-turn (well, for now) on secret Pre-Budget Report plan to raise VAT to 18.5% in 2011 – and is 20% on the cards?
A Treasury document was discovered on the Government website a few hours ago, late on Monday 24th November. It was a briefing paper on the Chancellor’s Pre-Budget Report – but with additional measures not contained in the issued version.
This document makes it clear that there is a plan not only to return VAT to 17.5% on 1st January 2010 – but to raise it to 18.5% in 2011.
The Government are denying that they plan to do this but the existence of the document undermines the denial.
Given the degree of smoke and mirrors For Argyll drew attention to in the Pre-Budget report plans delivered yesterday – and the hidden details that have emerged from the unannounced fine print earlier today of the whacking hike in tax on whisky – this adds to the damaging perception of deception by the Government, by the Chancellor and by the Prime Minister, Gordon Brown.
This morning’s U-turn (26th November): A handbrake turn was executed this morning with the document said to have been put on the Government website by mistake, reflecting no more than earlier discussion on the possibility of hiking VAT to 18.5% in 2011. Unfortunately the errant document had, in fact, been signed off by a Government Minister.
The Chancellor now says that ‘there are no plans for the introduction of a 18.5% VAT rate in 2011′. While that’s as may be, there is plenty of time between now and then for such plans to come into being.
Update 18.00 26th November: It has emerged during debate in the House of Commons that the UK Government considered a rise in VAT to 20% before, they say, rejecting it, presumably in favour of the rise to 18.5% from 2011 which seems not to be in the plans today.
The Conservatives have identified a £10 billion hole in the accounts of the Pre-Budget Report prepared by the Prime Minister and the Chancellor. It was delivered to the House on Monday by the Chancellor, to be followed by a damaging series of revisions and retractions, of which this is one.










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