Curse of the 10p Tax Rate
The most damaging revelation to emerge from 'Ballsgate affair' - is that Gordon Brown and the last Labour government knew exactly what they were doing - when they abolished the 10p tax rate.
The Telegraph reports today that government ministers received a 15-page analysis - on the impact of scrapping the 10p income tax band.
The document warned ministers that the move would leave more than 10 million low-income workers, families and pensioners - worse off.
At the time, Gordon Brown denied the policy would have any such impact - and carried on regardless.
As the furore grew inside and outside the Labour party - the Prime Minister was to offer some emergency compensation - for those hit by the tax changes.
A leaked document from the Telegraph's Ed Balls files - shows that long before the policy was announced Treasury officials asked the question:
'Who loses from the abolition of the 10p tax rate?'
The answer was clear and unequivocal - 6 million pensioner households and 5.25 million households recieving working or child tax credits.
So the notion that the government did not understand the real significance of its decision - was clearly a load of baloney.
Whatever else Gordon Brown was - he was a master of detail - and with 10 years experience under his belt as Labour Chancellor - he knew exactly what he was doing.
The truth is he just screwed up - big time - and his premiership never recovered.
The Telegraph reports today that government ministers received a 15-page analysis - on the impact of scrapping the 10p income tax band.
The document warned ministers that the move would leave more than 10 million low-income workers, families and pensioners - worse off.
At the time, Gordon Brown denied the policy would have any such impact - and carried on regardless.
As the furore grew inside and outside the Labour party - the Prime Minister was to offer some emergency compensation - for those hit by the tax changes.
A leaked document from the Telegraph's Ed Balls files - shows that long before the policy was announced Treasury officials asked the question:
'Who loses from the abolition of the 10p tax rate?'
The answer was clear and unequivocal - 6 million pensioner households and 5.25 million households recieving working or child tax credits.
So the notion that the government did not understand the real significance of its decision - was clearly a load of baloney.
Whatever else Gordon Brown was - he was a master of detail - and with 10 years experience under his belt as Labour Chancellor - he knew exactly what he was doing.
The truth is he just screwed up - big time - and his premiership never recovered.
