Budget 2009: Brown and Darling fly the flag
By politics.co.uk staff
Alistair Darling has unveiled a distinctly political Budget, putting down a firm dividing line with the Conservatives.
Borrowing will shoot up over the next few years to finance public spending, with an eventual peak over 80 per cent of GDP.
The big surprise came in the form of a new 50 per cent top rate of income tax for those earning over £150,000.
Along with highly optimistic forecasts, the Budget seemed set to irritate many City commentators, but also put some clear blue water between Labour and the Tories.
The Conservatives already announced that they would not undo Mr Darling’s decision to raise the top rate of income tax to 45 per cent. It is unclear whether that position will be retained now another five per cent has been added to it.
Responding to the Budget, David Cameron said: “These aren’t taxes for the few. These are taxes for the many. This isn’t just boom and bust. It’s the worst boom and bust ever.”
Immediately after the Budget, bookmakers cut their odds on the Conseravtives winning the next election.
William Hill are now offering 1/8 for the Tories to have the most seats, compared to 1/7 before the Budget.
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