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I read the article Nefarious politicking by Lesley Stalker and Paul Webb, which highlighted what seemingly may now have become the raison d’etre behind the Budgets and the taxation of the citizens and businesses of this country.
The highlight (or probably lowlight) was the final words of the 2007 Budget Speech concerning the reduction of the tax rate to 20% and that this was the lowest basic rate for 75 years.
Coincidentally, on 3 February 2010, a client who was unaware of this article brought to my attention an income tax return for 1929, which expresses the 20% tax rate as four shillings in the pound. In those days, similar to council tax demands today, one was advised as to how the money would be spent. (This makes interesting reading compared to today’s scenario.)
However, perhaps the orator should have taken on board that not only was the tax rate of four shillings in the pound the lowest for 75 years, but that it too was succeeded by a great depression.
And it seems that this was declared on a similar time scale after the four shillings in the pound rate was announced as has occurred following the announcement of the 20% rate. One is left to ponder the repetition of history and repeatedly that ‘pride cometh before a fall’.
It is a pity that humanity is seemingly not able to learn from history. Certainly when we have that beam of light in our eye for the short-term applause of the House, but which we may be able to regret at our leisure – perhaps following the loss of office.
Has this not been the turning point for taxation of this country, as ever since the citizens have become more questioning of government policy, taxation and expenses?
Barry Gascoyne FCA, ACII, Gascoynes Chartered Accountants
