Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Budget leak reveals Brown as Robin Hood

Anthony Bevins
Sunday 08 February 1998 19:02 EST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A Robin Hood budget is to be presented by the Chancellor, Gordon Brown, on 17 March - helping the working poor at the expense of higher taxes on the perks received by the better-off. Anthony Bevins, Political Editor, reports on the latest Budget leak.

Sources very close to the Chancellor of the Exchequer last night leaked details of a "Budget for women and children" which was said to have "cracked" the problems of working-families tax-credit system that would help to break the poverty trap.

It was stated authoritatively that tax changes would take effect next year which would overcome the three key difficulties of tax credits - switching cash from mothers to men; posing a threat to independent taxation of women; and putting an administrative burden on business.

A senior aide to the Chancellor said: "We have cracked all the problems of working-families tax credit. There is no question of imposing purse- to-wallet transfers, independent taxation is not being jeopardised, and it will be simple and coherent to administer."

The tax credit would include a special payment for childcare. "Women and children are going to be the biggest beneficiaries of the Budget," said sources close to the Chancellor.

The leak of the Budget's main framework was clearly designed to promote the fortunes of Mr Brown, who received a very poor reception from party members at a welfare roadshow in London last week.

It was also said that the Budget would reform national insurance and introduce the long-awaited 10p tax rate. The 10p rate, however, will be worth more to the high paid than to the working poor, because many of the less well-off could see, in some cases, more than 90 per cent of every extra pound that they received being snatched away by the benefits system. One of the changes to be proposed in the Budget will help the low paid by increasing the low level threshold at which national insurance contributions start to be paid, currently pounds 60 a week.

The Budget overall is said to be "neutral" in its impact on the exchequer, but the changes to help the poor will be paid for by higher taxes on drivers and smokers and by extra taxes on the perks and allowances exploited by better-off employees.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in