Alistair Darling hires ex Enron accountant

Posted on 9 October 2007 by Ray Boulger

2 Comments

When announcing his proposals on IHT in today’s pre-budget report Alistair Darling said that he would invest the £2 billion he had “saved” in health and education.” The only problem with this is that his proposals actually cost £1bn – they don’t save anything, let alone £2bn.

The £2bn “saving” is simply the difference in the estimated cost of his proposals compared with the Conservative proposals on IHT.

If this is the new definition of saving we can all solve our financial problems at a stroke. When, for example, we want a new car all we have to do is get someone else to propose spending, say, £50,000 on a new Mercedes but then spend only £15,000 on a cheaper car. Hey presto we have saved £35,000. I like saving this way – it is so easy!

UPDATE

I note from comment elsewhere on the pre budget report that in just 14 months Alistair Darling has done a huge U turn on IHT.

In August last year in response to a call from Labour MP’s Alan Milburn and Stephen Byers for IHT to be scrapped he said: "I don't think this proposal really has much support across the political spectrum. It may make for a headline, but I don't think it makes for a prudent and sensible tax and spend policy. Inheritance tax brings in about £3bn a year. If you get rid of it, it follows that some other tax has to go up or you have to cut some public spending, on health and education and so on."

Wonder what changed his mind!

Category: Miscellaneous, Personal finance

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