Alistair Darling’s just delivered a statment to the Commons, outlining measures to help those hit by the abolition of the 10p tax band. In short: the personal tax allowance will be increased by £600 to £6,035, and this will be paid for by increased borrowing. This is, says Darling, “the simplest and most effective” course of action.
Of course, it’s the economics of a mad-house – announcing a tax policy in one Budget, only to run up more debt nullifying its effects just one year later. But as Nick Robinson points out, Darling’s move could be the first bit of good news that Labour have had in weeks. After all, it should draw a line under the 10p tax row, and ease the pressure on low-income earners. The Tories have been “wrong-footed”, apparently. Now, it all depends on whether voters forget what caused the mess in the first place.
UPDATE: Above, I should have written ‘partially nullifying’ – some 1.1
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