Brown “guarantees” economic stability

Gordon Brown has admitted 2008 will be a “tough year” for many households but vowed to maintain economic stability. Writing in the Sun, the prime minister has appealed to “hardworking families” to have faith in his economic abilities. His intervention comes as the Conservatives increasingly argue Mr Brown’s tenure at the Treasury has left Britain […]

Budget 2008: Budget ‘to tackle’ child poverty

The government is expected to recommit itself to tackling child poverty when Alistair Darling delivers the Budget today. But amid an economic downturn it appears unlikely the chancellor will be able to release the funds campaigners say are necessary to meet the government’s target of abolishing child poverty. To hit interim targets of halving child […]

Darling urged to reject “tax dodgers’ charter”

The Confederation of British Industry (CBI) has added its voice to the calls for a tax cut in this Wednesday’s Budget, arguing the present rate of corporation tax is making the UK uncompetitive. Following an “independent” assessment of corporation tax, which found the UK has slipped from fourth to sixth in a ranking of EU […]

Golden rule ‘could be broken’

The government may be forced to break its fiscal rules to cope with the impending economic downturn, businesses have warned. The British Chambers of Commerce (BCC) made the prediction as it forecast average gross domestic product (GDP) growth will fall from 3.1 per cent in 2007 to a weak 1.7 per cent in 2008. Prime […]

Darling ‘should increase tax by 2p’

The chancellor has been urged to raise income tax by two pence in order to plug a £8 billion hole looming in the economy. The Institute for Fiscal Studies (IFS) thinktank warns the Treasury is on course to break its own “fiscal rules” and it would be “prudent” for Alistair Darling to raise taxes in […]

Brown ‘failed to prepare for rainy day’

Public servants are being offered below-inflation pay rises because the government failed to plan for the economic downturn, the Conservatives claimed today. Shadow Chancellor George Osborne said Gordon Brown had failed to make Britain “prepared if rainy days lie ahead” during his ten-year control of the Treasury. As a result Britain has been left with […]

Brown calls for MPs pay cap

Gordon Brown has called for MPs to keep their annual pay rises under two per cent in order to keep them in line with public sector workers. Speaking after the senior salaries pay board apparently recommended a 2.8 per cent pay increase for those at Westminster, the prime minister urged restraint. His call comes as […]

TUC warns Brown could pay ‘political price’

Gordon Brown risks paying a “political price” for attempting to “railroad” through public sector pay deals which unions have claimed amount to a pay cut. TUC general secretary Brendan Barber criticised Mr Brown for his handling of public sector pay deals, claiming his “rigid” approach has harmed workers’ morale. Ahead of the annual gathering of […]

MPs warn against rushed school building

The government should be cautious about relying on private money to fund new school building projects, a committee of MPs has warned. The Commons education committee welcomed the government’s investment in school building but said the benefits would be lost if the government rushed through projects. Around half of the £35 billion rebuild programme is […]

Brown must make ‘a fresh start’ says union

Only a completely new approach to public services will reverse low morale among workers, the Trade Union Congress (TUC) has warned Gordon Brown. In a submission to a forthcoming Comprehensive Spending Review, the union savaged the government’s “ill thought out” reforms of public services and below inflation pay rises in the sector. Gordon Brown accepted […]