While Jeremy Hunt was casting about, trying to save his political life at the Leveson Inquiry, the Treasury issued its latest u-turn: the expected volte face on charitable giving. Interestingly, the Sunday Times’ Isabel Oakeshott reveals that yesterday she arranged to meet 2 senior Treasury officials this morning, but the meeting was postponed earlier today, which might suggest that the decision to drop the controversial tax change was taken at very short notice. If so, what does that say about the Treasury’s view of unfolding events at the Leveson inquiry? Where, in addition to the pressure on Hunt, George Osborne has been implicated in elements of the BSkyB deal by Hunt while under stern examination from Robert Jay QC.
In terms of the u-turn, there are two schools of thought. On the one hand, there are those, like Sir Simon Jenkins, think that ‘listening and learning’ are positive attributes for a government. On the other hand, there are those, like Nick de Bois MP, who insist that the government’s credibility is being damaged, perhaps irreparably.
This is the budget that keeps on giving, and the u-turn is another blow to George Osborne’s reputation. But it’s worth remembering that the charities tax clause was included in the Budget at the last minute to appease the Lib Dems, who were uncomfortable about cutting the 50p rate. This decision, and the subsequent embarrassing u-turn, is likely to worsen coalition relations and make strategists more wary of adopting the swift compromises that are so often necessary to keep the cogs turning.
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