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The Budget 2006

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In many ways it was Gordon Brown’s most important Budget since labour swept to power in 1997. It was, after all, his tenth consecutive budget – a record in modern times. He is also under intense scrutiny as Blair’s heir to New Labour, facing for the first time direct challenges from David Cameron. Despite Blair’s reassurances during the proceeding PMQ’s that he will remain as Prime Minister for as long as “necessary”, it is clear that we are witnessing the birth of a new age in British politics, the post-Blair era.

In what was described as “Brown’s No 10 Budget”, the chancellor dedicated the government to a programme of spending that will determine the battle lines between Labour and the Tories in the coming year. He drew attention to key areas of contention: the environment, tax credits, trust funds, measures to battle unemployment and education. One of the most striking changes concerned the calculation of road tax – made to penalise gas guzzling off road vehicles (“ Chelsea tractors”) and reward environmentally friendly schemes. Brown also unveiled his ambitious plan to increasing spending in state education to a level equivalent to £8,000 per child per year – a level which matches the current investment per child in the private sector.

David Cameron, clearly itching to take the stand during the hour long speech, reacted with a vigorous (and, it must be said, highly entertaining) attack on Brown’s capability to enact progress in the modern age, describing him as “a Chancellor who has taxed too much, borrowed too much and is the roadblock to reform. He is a politician completely stuck in the past!” Cue much snooty laughter from the opposition. Sir Menzies Campbell, leader of the liberal democrats responded in his now familiar “now look here, chaps” tone, calling the chancellor to account for failing in his responsibilities over tax, the environment, pensions and debt.

Of course, this Budget wasn’t about economics (one commentator even described it as “the least significant in living memory… a piece of parliamentary theatre, rather than an exercise in economic management”). It was, instead, the opportunity for the next batch of party leaders to show their plumes in front of parliament and the public. Given Brown’s steely resolve to stick to his party’s agenda, and Cameron’s confidence and theatricality, expect things to get a little personal from now on.

Picture credit: Mike Webster/BigPicturesPhoto.com


Tom Knight, MyVillage 19th October


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