Check your own MPs troughing yourself, returns are online here.
By coincidence here in Ireland it was also budget day, the Finance Minister Brian Lenihan delivered a 7% cut in public expenditure to match the 7.5% fall in GDP in 2009. To equal that Alastair Darling would need to have announced £40 billion in public expenditure cuts today.
Here are some of the reasons Guido thinks Ireland will bounce back faster than the UK:
- Corporate and capital tax breaks for start-ups have been extended
- Corporation tax rate of 12.5% is ‘here to stay’
- “Green tax cuts” for zero emission vehicles
- VAT has been reduced by ½%
- Public services efficiencies sort
- Welfare benefits reduced to 2006 levels, social welfare bill cut by equivalent to 1.5% of public expenditure
- Dole allowance to be reduced to €150 a week
- Social welfare to be cut 4.1%
- Politicians’ pay will be reduced in line with public sector grades
- Public sector pay cut of 5% on first €30,000 salary, 7.5% on the folllowing €40,000 of salary and 10% on next €55,000
- Taoiseach (PM) to have pay cut by further 20% on top of previous 10%
- Permanent pay reduction of 12% for those on over €200,000 in the public sector
- Savings of over €1bn on public sector pay bill
Darling has gone the other way, introducing penal tax rates at the top, and hiking NI payroll taxes on people on only £20,000. He put up VAT which as any left-winger will tell you, is regressive and hits the poorest hardest. What struck Guido was that this is an odd class war political budget, their own core voters are being hit hardest. Low paid, public sector workers on £20,000 get a pay freeze, a tax hike and whacked by VAT increases – a triple whammy.
Ireland welcomes UK corporations with a tax rate nearly half the UK rate and best of all, Lenihan also announced that alcohol and cigarette taxes are to be reduced…
Peston is at it again, the cocky hack claims he has “confirmed” matters thus:
“It has been confirmed that the Chancellor Alistair Darling will impose a one-off super-tax on city bonuses when he unveils his Pre-Budget Report today”.
Shouldn’t the Speaker demand of the Chancellor why Peston and not parliament was the first to know of his plans? The PBR is important and may contain market sensitive information. Peston has previous on this, causing mayhem with share prices and arguably creating a false market. Bercow made a big thing of insisting on the primacy of parliament when he was running for office. Prove it today.
Bob Diamond, head of investment bank Barclays Capital, warned yesterday that businesses and individuals could flee the City – “both financial capital and human capital are extremely mobile”. Tory appeasement of City bashing will continue, led by the son of a son of a son of a stockbroker they stand on the sidelines for fear of being painted as friends of the City. Guy Hands is just one high-profile tax exile, many more are fleeing the 50% tax rate. We already seeing human capital flight…
UPDATE : How will the plan to tax bonuses cover the hedge fund community? It won’t is Guido’s guess, they are unregulated in the most and the capital is nominally held offshore. The hedgies in St James are the ones who take home 8-figure sums. Bankers and brokers will have to re-define bonuses as ‘profit shares’ and their limited partnerships as “mutual cooperatives”…
Twitter is awfully quiet without Nadine Dorries who is currently sans Blackberry, filming a documentary on a council estate for a week. Twitter’s traffic has dropped substantially without the regular haiku form updates. The unpopular parts of the blogosphere are […]
As yet unconfirmed officially, but brace yourselves for another round of expenses exposures related to last financial year being released this Thursday morning. Will be in redacted form…[…]