Brown defends tax-cutting budget

LONDON – British finance minister Gordon Brown defended his tax-slashing budget yesterday against charges that it was a “con trick.”

Brown, a Scotsman favourite to take over as prime minister from Tony Blair when he steps down later this year, unveiled a voter-friendly budget on Wednesday, cutting company and income tax. The basic income tax rate will fall from 22 per cent to 20 per cent in April 2008.But he also abolished the lowest income tax rate.The main opposition Conservative Party used this to argue that Brown’s budget was a “con trick” (confidence trick) which would leave many workers worse off.Brown responded on Sky News yesterday by saying: “That’s absolute nonsense.”He added: “I’ve tried my best by everyone …and what I’ve tried to do is look at the needs of particular groups as we make this major change in the tax system.”But George Osborne, Conservative shadow finance minister, said that about 3,5 million people earning 5 000 to 18 000 pounds per year would see their tax bill rise.”Watching Gordon Brown, there’s no way you would have known that.He pulled a con trick,” Osborne told GMTV.According to Brown, average British households would be 100 pounds per year better off under the new plans, while families with children would benefit from an additional 250 pounds.”I’ve tried to look at what is happening to each of the groups – families with children, pensioners and the low-paid workers – and I’ve tried to do my best to ensure they are better off,” Brown told BBC television.”I wanted to make this tax simplification because I think it’s right we have a tax system that’s competitive with the rest of the world, and one which helps pensioners, families with children and helps the low-paid.”Nampa-AFPThe basic income tax rate will fall from 22 per cent to 20 per cent in April 2008.But he also abolished the lowest income tax rate.The main opposition Conservative Party used this to argue that Brown’s budget was a “con trick” (confidence trick) which would leave many workers worse off.Brown responded on Sky News yesterday by saying: “That’s absolute nonsense.”He added: “I’ve tried my best by everyone …and what I’ve tried to do is look at the needs of particular groups as we make this major change in the tax system.”But George Osborne, Conservative shadow finance minister, said that about 3,5 million people earning 5 000 to 18 000 pounds per year would see their tax bill rise.”Watching Gordon Brown, there’s no way you would have known that.He pulled a con trick,” Osborne told GMTV.According to Brown, average British households would be 100 pounds per year better off under the new plans, while families with children would benefit from an additional 250 pounds.”I’ve tried to look at what is happening to each of the groups – families with children, pensioners and the low-paid workers – and I’ve tried to do my best to ensure they are better off,” Brown told BBC television.”I wanted to make this tax simplification because I think it’s right we have a tax system that’s competitive with the rest of the world, and one which helps pensioners, families with children and helps the low-paid.”Nampa-AFP