Darling draws battle lines for the election

Mar 25 2010 by Will Green, The Journal

ALISTAIR Darling yesterday drew the battle lines for the election by portraying Labour as the party for the ordinary majority.

The Chancellor painted the Conservatives as representing the super-rich and ridiculed their economic policy in the last Budget before the general election, expected on May 6.

First-time buyers will not pay any stamp duty on properties up to £250,000 and young unemployed people will get help, said Mr Darling.

He unveiled a £2.5bn one-off growth package to help small businesses and promote innovation, including a temporary cut in business rates and the creation of a new growth capital fund.

And to pay for it, plans were unveiled to “soak” the rich – including a 5% stamp duty on £1m properties.

“I believe those who have benefited the most from the strong growth in incomes in past years should now pay their fair share of tax,” said Mr Darling.

The Chancellor insisted Labour took the right decisions, including on saving Northern Rock, to avoid economic “disaster” despite Tory opposition.

Underlining his message, Mr Darling announced a deal to clamp down on tax avoidance in Belize – where Tory deputy chairman Lord Ashcroft is based.

To loud Labour cheers and laughter, he said: “We expect these deals to be signed within a few days – which is rather quicker than the 10 years it’s taken the front bench opposite to exchange information with the deputy chairman of their party.”

The prospect of thousands of civil service jobs being relocated from London and the South East to the North East was offered – minus any details.

The region could also secure money from a new state-backed investment bank thanks to its lead on developing green energy industries.

The Chancellor also signalled the sell-off of nationalised Northern Rock was moving closer.

But the regional public sector faces massive “efficiencies” to help cut Britain’s £167bn deficit, despite Mr Darling refusing to offer detailed plans.

The small print of the Budget reveals that HM Revenue and Customs and the Department for Work and Pensions – which have regional major bases – must make £500m of savings by switching work online, which could spark serious job losses.

Conservative leader David Cameron said: “Labour have made a complete mess of the British economy and they have done nothing to clear it up.

“The biggest risk to the recovery is five more years of this Prime Minister.”