Portrait of the Week – 10 December 2005

Mr David Cameron was elected leader of the Conservative party in a ballot of members, beating Mr David Davis by 134,446 votes to 64,398. Mr Gordon Brown, the Chancellor of the Exchequer, in his pre-Budget report astonished investors planning self-invested personal pensions by announcing that they ‘will be prohibited from obtaining tax advantages when investing in residential property and certain other assets such as fine wines’. He also enraged North Sea oil producers by increasing corporation tax on their profits, from 40 per cent to 50 per cent. Mr Brown hoped to get an extra £2.3 billion from the oil taxes and another £700 million from other corporate taxes, in order to shore up public finances. Last March he had predicted economic growth of 3.5 per cent this year; now he has reduced that to 1.75 per cent. He hatched a scheme to spend hundreds of millions lying dormant in unused bank accounts to fund volunteer projects during young people’s gap years.