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Downing Street in Westminster, London
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The General Election and taxes

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19th Apr 2017
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The overnight headlines have echoed Theresa May’s message that the General Election has been called solely because of impediments to her policy for leaving Europe.

The cynical (i.e. me) might wonder if there is something deeper hidden behind the rhetoric.

If nothing else, at present Mrs May does not have a personal mandate from the country. To make matters worse, she is also operating in the shadow of a manifesto that was written by David Cameron and his cohorts.

As Philip Hammond and his Prime Minister discovered to their cost only last month, the manifesto contained a number of promises that the pair had forgotten (or flouted?) but the country had not.

In particular, the Conservative Party had firmly set out its stall with regard to protecting individuals and companies from unexpected tax hikes.

While this might have suited George Osborne very well in his role as Chancellor of the Exchequer, his poor successor came a serious cropper when he not very stealthily attempted to increase National Insurance Contributions for the self-employed.

The result was so embarrassing that Mr Hammond was sent away with a flea in his ear and told to make a U-turn of the kind that is can only be described as extreme and almost unprecedented.

Therefore, those in the accountancy profession might ponder briefly amidst the political infighting of the next six weeks to wonder whether a Government that has not so far been distinguished by its consistency might have some hidden changes in store for the next Parliament.

It is inevitable that if, or probably when, the Conservative party comes back with an increased majority, there will be a cabinet reshuffle. Personally I would not put too much money on Philip Hammond continuing as Chancellor of the Exchequer following his far from sparkling performance in delivering his first (and quite possibly only) Budget.

Whether he survives or not, my view is that the government might see this as a wonderful opportunity to shore up the country’s finances, which are likely to suffer at least a short-term hit as we leave Europe. How better to achieve this than stealthily or even blatantly removing the tax freezes from a manifesto that will not be pored over in great detail beyond the euro headlines?

In passing, I think it important to acknowledge that there is an opposition party and perhaps we should also be following any comments from John McDonnell since he might just be Chancellor of the Exchequer in Jeremy Corbyn’s new administration come 9 June.

We probably also need to go a step further if that is the anticipated outcome, since this voter finds it unlikely that Labour will get in without the assistance of the Liberals, the SNP (preparing for their own independence in this scenario) and quite possibly a few other usually inconsequential parties or independent MPs.

Roll on the tedium of an expensive and many might suggest unnecessary political jamboree.

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By johnjenkins
19th Apr 2017 15:33

I think TM has made a mistake in going to the country.
MTD and the Landlords fiasco might well allow many Tories to vote Lib/Dem as a protest vote, especially those that voted to remain.
So my view is that we are looking at a hung parliament with Lib/Dems holding the balance of power.
Will TM resign if she doesn't get the mandate she is looking for and if she does will BJ take over.

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By Knight Rider
20th Apr 2017 10:27

The Lib Dems may garner a few remainer votes by deliberately confusing access to the single market with membership of it and appealing to the disillusioned and despondent as usual. But there were 4m UKIP votes at the 2015 election the majority of whom will return to the Conservatives.
TM will be back with a 100+ majority.

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By lme
21st Apr 2017 12:26

OMG not BJ, please. At least TM is not a blatant liar.

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By johnjenkins
21st Apr 2017 12:48

"TM not a blatant liar" eh.
Quote:- "We will not have a general election because it is not in the public interest" (but not just once). Now I wonder who said that.

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Replying to johnjenkins:
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By Knight Rider
25th Apr 2017 10:24

A lady can change her mind!

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By johnjenkins
25th Apr 2017 12:21

Ladies often do. Look at Le Penn trying to divorce herself from the NF. That's why Maggie got kicked out (because she wouldn't change her mind).

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By Knight Rider
26th Apr 2017 12:00

The community charge was a good policy poorly executed. It was also what they promised to do (replace the rates with a system not based on property values). But you are right - if she had backed down she may have won and we might never have seen Tony Blair.

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By johnjenkins
26th Apr 2017 12:23

I think Tony would have gone straight to Europe, become Transport Minister, then El Presidente. No doubt the currency would have been the "bleuro".

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