Boxed-in chancellor

Mar 11 2008 by Andrew Baldwin, Huddersfield Daily Examiner

CHANCELLOR Alistair Darling’s first Budget tomorrow naturally raises two important questions.

First, what will he give us?

More importantly, what will he take away from us?

Mr Darling can hardly be finding he has a dream job, boxed in by the set of strict principles laid down by Gordon Brown when he was Chancellor.

Since then, of course, things have got much worse, with the likes of the Northern Rock crisis and deepening gloom about the economy.

Rising public borrowing gives Mr Darling virtually no room for manoeuvre because of his critical need to raise more cash.

Nevertheless, a headline-grabbing act of generosity is vital for any Chancellor – so don’t be too surprised if he announces a rise in winter fuel payments for the elderly.

And it would be overdue too.

While the amount of the winter fuel payment has been frozen at £200 for five years, fuel bills and the profits of energy companies have both risen.

An increase in the benefit would undoubtedly be a huge help to the millions of people who spend more than 10% of their income on gas and electricity.

Aside from that, expect the contents to be more take than give when Mr Darling lifts the famous red box on the steps of 11 Downing Street tomorrow morning.

Big duty rises are almost certain for strong beers, wines and spirits when the financial package is unveiled, with all political parties battling each other over measures to tackle binge-drinking.

But using taxation as a way of trying to change people’s behaviour is a notoriously blunt instrument, often having almost no tangible effect – so expect the boozing to continue.

And as for the scrapping of rises in fuel duty – forget it. But don’t buy the green excuse for the increase – it’s all about money, money, money.

A troubled Chancellor battling with the public debt monster is unlikely to offer us much.