George Osborne turns the tables on Gordon Brown
In a surprise move which will disappoint Gordon Brown and the Labour Party, it has been revealed that shadow Chancellor George Osborne would not scrap the 50% tax rate if the Tories gained power at the next election but would instead concentrate on the government's increase in national insurance. This is a severe blow to Gordon Brown who had fully expected the Tories to announce they would scrap the 50% rate and fuel the "class wars" within politics.
This is a very clever move by George Osborne and David Cameron which will curry favour with many UK voters, with those earning in excess of £20,000 a year set to be hit by the increase in national insurance rates. This has somewhat undercut Labour's policy of tax and spend and it will require some creative thinking for the Labour Party to out-do the Tory party on this particular issue.
With political parties clambering to gain the middle ground as we approach the next general election it is the Tory party in a stronger position, able to promise tax reforms in the future, while the Labour Party continues to be overshadowed by the threat of a "secret tax bomb". This could be one of the most interesting general elections for some time.
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