Lib Dems see through Brown's budget con trick

1.22.16pm UTC (GMT +0000) Thu 22nd Mar 2007

Gordon Brown wanted a headline grabbing tax cut for his last budget as Chancellor, so he announced a 2p cut in the basic rate of income tax. Whilst the Tories were predictably bemused, Liberal Democrat front bencher David Laws MP immediately saw through the Chancellor's con trick.

Although the basic rate of income tax is down from 22p to 20p, this is at the cost of abolishing the lower rate of 10p, leaving lower earners worse off. According to The Guardian, those earning less than £17,000 per year are likely to be worse off despite the tax cuts. This is another example of Labour robbing the poor to pay the rich.

Although it is Liberal Democrat policy to get rid of the lower 10p tax band we would do this by reducing it to zero, lifting millions of low paid workers out of paying income tax altogether.

Even the staunchly pro-Conservative Daily Telegraph applauded the Lib Dems, with a comment by their columnist Brendan Carlin "Hats off to David Laws - the Liberal Democrats' very own 'two brains' - for seeing through Gordon Brown's tax promises today. It was Mr Laws' sharp eyes that allowed the Lib Dem Budget team to trump the Tories in the Commons today, I'm told."

Commenting on Gordon Brown's budget, Liberal Democrat Leader Menzies Campbell said: "While the Chancellor has taken some of the key headline policies from the Liberal Democrats, he has got the fundamental point wrong, we need tax cuts for the low and middle income earners now. Those on low incomes will now experience even higher rates of taxation and this will do nothing to increase incentives to work."

"The Chancellor had the chance to use this final budget to show that he was listening to the voices of the people of Britain. But he has delivered a budget of missed opportunities. He had the chance to build a fairer Britain through tax cuts for the low paid - but in fact he has increased income tax for the lowest paid."

"He had the chance to create a greener Britain by taxing pollution - but he shunned it. And he had the chance to shape a prudent Britain by saving billions of pounds on government waste - but he avoided it. Instead he has spurned all of these opportunities. He has concentrated on his own political succession."