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News Release from: Cicero Consulting
Edited by the Insidemoneytalk Editorial Team on 23 March 2006

Cicero: As political theatre, the
Chancellor's last Budget did not
disappoint

A tax cutting Chancellor Brown - who would have thought it! Was I listening to a Tory budget?

This was perhaps the most substantive Budget Brown has delivered for some time Following a difficult few political weeks for the Chancellor, with a final flourish, Brown unveiled a cut in the basic rate to 20p from 2008

A really strong platform to take to the country as he aims to be Prime Minister in coming few months.

Of course, as ever, the Chancellor has announced a considerable amount of 'jam tomorrow' with many of the tax and spending commitments but Brown's simplification of the income tax system has already been met with roars of approval.

The Green measures - designed to change our behaviour and to demonstrate that Brown wants to take Cameron's political territory- were much expected with higher taxes on gas guzzlers and fiscal incentives for greener homes.

In his desire to encourage savings - Brown at last gave a nudge to the ISA regime by raising the overall limit to £7,200 as well as a significant move on inheritance tax - raising the threshold to £350,000 by 2010 - answering many of his housing market critics.

For pensions, the announcement that the Financial Assistance Scheme is to be quadrupled from £2bn to £8bn is a tremendous fillip for those long suffering campaigners around failed Company pension schemes - and comes just before the Government was set to be forced into a commitment from the Courts.

The question we need to know much more about is: just who will pay? While Cameron rounded on Brown - asking this is the 'Where is the Money Gone?' Budget - a question around public finances - the Conservatives' fiscal pledges were rejected by Brown - a sign of the tone and tide of debate to coming when Brown and Cameron are finally pitched together as leaders.

In political terms - this was Brown's final springboard before the Labour leadership election.

Has he done enough to ensure this particular poll will be uncontested - almost certainly.

Expect Gordon Brown to enter 10 Downing Street around June 25 as Prime Minister.

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