Azara Blog: Alistair Darling throws 2.7 billion pounds at tax problem

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Date published: 2008/05/13

The BBC says:

Chancellor Alistair Darling has put up the personal tax allowance by £600 - meaning anyone earning up to £40,835 will gain £120 this year.

His £2.7bn tax cut for this year came as part of measures to help those hit by the axing of the 10p tax rate.

He told MPs he would lower the level at which 40p tax is paid - so higher earners did not gain from the change.

This seems like a semi-sensible an idea. One problem is that 2/3 of the tax cut is going to people who already benefitted from a tax cut in the budget. Another problem is that this is adding to UK debt. Otherwise it's as good a solution as any to the political problem New Labour found itself in, since it's not (that) complicated or (that) expensive to implement.

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