National politics

PBR and the Fat Middle


Yesterday’s Pre-Budget Report, see here, was not designed to be clear. My point from Sunday, The Fat Middle, was underlined in Table 1.2 on page 11. By all means try to soak the rich but the only way to make the books balance is to soak everyone who has levered themselves above the breadline.


This table (click to enlarge) lays out the tax changes covered by the PBR. It only covers half of the National Insurance rises but still tax changes for ordinary people total £8,160 million. The bank payroll tax on bonuses brings in £550 million. It may alienate the City on which London still depends. It may not make a large difference to the total tax take but still Darling can’t help himself. Posing, not governing.

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