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Top earners 'to share sacrifice' | |
(about 13 hours later) | |
The prime minister has defended raising the tax bracket for top earners, saying that they must "share the sacrifice". | |
A new 45% higher income tax rate is proposed for earnings above £150,000 from April 2011. | |
The move was made "not on the basis of envy but to share the sacrifice that's necessary to take us through difficult times," Gordon Brown said. | |
He also said that action to get banks lending to small firms again would come "in the next few days". | |
This is the biggest new Labour project of all, giving people confidence and hope that we can get through this downturn into a better economy and society name here | |
Banks, some of who are set to share in a £37bn government bail-out, have been choosing to hoard cash to bolster their balance sheets, rather than offer loans at affordable rates. | |
Sharp falls in interest rates have not been fully passed on to consumers because the costs for banks to borrow money themselves have remained high. | |
'Quick acting' | |
Speaking at a conference held by think-tank Progress, Mr Brown defended his £20bn stimulus package aimed at kick-starting the economy and getting people through the crisis. | |
"This is the biggest new Labour project of all, giving people confidence and hope that we can get through this downturn into a better economy and society," he said. | |
And the stimulus efforts were not just about cutting Value Added Tax (VAT) but also investing in public works, pensions and child benefit, he said. | |
Reducing VAT from 17.5% to 15% for 13 months from Monday was the right move, Mr Brown said, because it was "quick acting, everybody benefits and things can start straight away". | |
Charity role | |
Speakers at the New Labour group's conference are urging the government to radically overhaul the benefits system - including making more single parents work, funding universal childcare and providing higher maternity leave payments | |
Other plans include giving private firms and charities the right to bid to run more public services. | Other plans include giving private firms and charities the right to bid to run more public services. |
Among other speakers are cabinet ministers Lord Mandelson, James Purnell and Hazel Blears. | |
The organisation is launching policy reports in five different areas - public services, welfare, immigration, crime and justice and foreign policy. | |
Under the plans, which have been devised by former cabinet minister Alan Milburn, 10-year "franchises" for services such as GPs and colleges would be up for tender. | Under the plans, which have been devised by former cabinet minister Alan Milburn, 10-year "franchises" for services such as GPs and colleges would be up for tender. |
Others proposals include making grant-funded students who drop out of university pay back part or all the money. | Others proposals include making grant-funded students who drop out of university pay back part or all the money. |
Also, forcing local authorities to spend more money on youth services and the creation of civilian security force consisting of military trainers, civil servants, police officers, judges and other logistical staff. | Also, forcing local authorities to spend more money on youth services and the creation of civilian security force consisting of military trainers, civil servants, police officers, judges and other logistical staff. |
'Not enough' | 'Not enough' |
Work and Pensions Secretary James Purnell used his speech to deny accusations that the government's economic rescue package represents "the death of New Labour". | |
He also said: "Gordon Brown and Alistair Darling have rightly been congratulated for helping lead the world's response to the credit crunch. But if we think that we will be rewarded in the long term for that fact alone, we will be making a mistake." | |
The audience heard him describe New Labour slogans such as "For the many, not the few" and "Education, education, education" as "stale" but still inherently correct in their message. | |
"Far from being abandoned, these ideas need to be renewed by applying them to today's changed circumstances, " he said. | |
TUC general secretary Brendan Barber is also due to speak at the conference. | TUC general secretary Brendan Barber is also due to speak at the conference. |
He is expected to tell the audience it was "time to ditch the New Labour discourse" with deregulation, privatisation and liberalisation now all "brought into disrepute". | He is expected to tell the audience it was "time to ditch the New Labour discourse" with deregulation, privatisation and liberalisation now all "brought into disrepute". |
Instead, he wants a commitment to "the language of equality, fairness and social justice". | Instead, he wants a commitment to "the language of equality, fairness and social justice". |