There was much in the budget that was depressing, not least as one commentator on this blog has noted:
It appears that the line the media are taking is that the mess we are in is all Labour’s fault. Whilst I am very critical of Labour indeed, there seems to have been a decision taken that we should all forget that it was in fact the banks that created this catastrophe.
I think that is fair comment. There’s no doubt Gordon Brown’s legacy is not good. But he can’t be responsible for it all.
And there were signs of progress from a tax point of view e.g. para 5.85 on charities:
Budget announces further informal consultation with the sector to develop new rules based around an effective anti-avoidance purpose test.
There can be little doubt a new approach to tax avoidance is being developed.
I welcome that.
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he was undoubtedly responsible for the regulatory system which allowed, if not encouraged, the banks to over extend lending and underprice risk. In fact he seems to be actively encouraging more of this.
This is not a fair comment at all. It is not the fault of the bankers, it is the way with which anglo-saxon political and economic lives are devised. Every Briton wants to own their own property because of mentality issues, greed, and lack of protection of tenants of rented properties. The whole British economic system is based on selfish capitalism, and the bankers are only part of that system. The other parts are the politicians who promote the system and the people who are greedy.
I think the one thing which Labour has missed out is this: the change of attitude towards property ownership. Why are Europeans happier to rent? Why are European banks not going under? Why are we still giving credit to the CML???
Hum, We don’t need a change in attitude towards property – that’s pie in the sky (and it’s not a uniquely British thing – look at Ireland and Spain) – but a change to the tax system. Substituting current property taxes and all other taxes funding local government expenditure for an annual land value tax, paid by owners, representing the full unearned rent from land, would reduce house prices permanently to reflect building costs only. Property speculation, and all the damage that does to the economy, would cease.