Thursday, 11 September 2008

Brown provides too little too late....again

Many people were disappointed when the government announced a stamp duty holiday for properties costing up to £175,000. It was rightly denounced as too little too late to stimulate the housing market and help first-time buyers.

Now we have the latest gem from Gordon - £910 million for household insulation to tackle fuel poverty. £560 million of which is old money. We also know that the work to insulate all the houses of the 'fuel poor' can't be done before winter. Which means the old and the poor are likely to freeze. Meanwhile the energy companies are making billions in extra profits and laughing all the way to the government bailed out bank. Much of the extra cash that they are making is going where you would expect - straight into the pockets of shareholders. The energy suppliers paid £1.64bn in dividends in 2007 - £257m more than the year before.

Caroline Lucas, Green Party Leader, has called for a windfall tax - she wrote:-

"When the fuel crisis started to bite, a strong leader would have set their sights on achieving energy independence. Instead, our prime minister went running to the profiteers-in-chief to beg for just enough more oil to keep us dependent. Just three of these companies – BP, Centrica, and Shell – together made £1000 profit every second over the first 6 months of this year. Every penny that the oil price inches up, is a new surge of cash from the pockets of working families, students, the elderly and the disabled, directly into the bank accounts of the world's petro-giants."

It's unlikely that Gordon Brown, who is deeply committed to protecting the interests of big business, will be shifted on a windfall tax. But his obstinacy in the face of the overwhelming case for such a tax might just result in him finally being shifted out of office.

No comments: