Tuesday, May 13, 2008

Feel free to copy, there is no copyright on an Anoneumouse montage. (click on image to enlarge)

Small Change at Crewe

The Chancellor of the Exchequer Alistair Darling is to borrow £2.7 billion pounds to reverse a slide in the Labour government's popularity.

The Treasury will lift the threshold at which it begins taxing income by £600 to £6035 pounds to compensate 80 percent of the 5.3 million households hurt by a decision to scrap the lowest income tax bracket. Darling said he will raise government borrowing to finance the decision.

The tax changes will be back-dated to the start of the fiscal year and come into force in September. That means basic rate taxpayers will get an extra £60 pounds in September and 10 pounds a month until April 2009. Voters are deserting the Labour party as rising inflation and falling house prices eat into their wages.

Darling's changes were timed to defuse a revolt over finance legislation in Parliament and to head off the prospect of a defeat in the Crewe by-election, formerly safe Labour seat on 22nd May.

All this is happening as the Bank of England announces that the official annual inflation rate soared to 3% in April. Increases in food and fuel costs led the cost of living rate to surge from the 2.5% recorded in March, to well above the 2.6% forecast for last month.

So how do you pay your bills between now and September and what happens after April next year.


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