The
Brown Hole in New Labour's sums
The Treasury's figures
show how Gordon Brown is planning to lift spending to 42% of the economy
over the next few years.
Treasury figures
also show how tax will rise as a percentage of the economy to pay
for this spending.
But Gordon says he's
not going to put up tax rates....
What
Gordon Didn't Say in the Pre-Election Budget
(Stealth Errors)
Gordon
Brown's sums are starting to go badly wrong. In the 2001 Budget, he
promised borrow just £4bn over the four years of this Parliament.
The real figure turned out to be £95bn - a rather significant error.
Brown
now claims that he can rake in the revenues faster than the economy grows,
AND not put up tax rates.
Even
The Sun saw through that one with its post-budget headline, 'Beware The
Bribes of March.'
He
says he can get more money by closing 'loopholes' in the way companies pay
tax.
But
over the past few years, revenues have been coming in more slowly than Brown
expected.
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Almost
all independent economists disagree with Brown and say taxes will go up
if New Labour gets back in. They simply don't believe that he can
raise revenues faster than the economy grows, without putting up taxes.
He's Gordon Brown, not Harry Potter.
The Institute For Fiscal Studies has identified an £11 Billion hole
in Brown's sums. This would mean the equivalent of 3p on income tax.
But
even those figures depend on the economy growing as fast as Gordon predicts.
if the economy grows more slowly - or - horror of horrors - goes into a
downturn, then taxes are going to soar.
