Rob Merrick: Darling's Budget climbdown

Mar 19 2008 by Rob Merrick, Liverpool Daily Post

MY Budget Day story read: “Drinkers and drivers of gas-guzzling cars pay to rescue poverty pledges” – which was undoubtedly true.

But, after closer scrutiny of the Red Book small print, an alternative intro emerges: “Chancellor caves in to City of London fat cats – again.”

Mr Darling told MPs he was pressing ahead with his £30,000 levy on those wealthy foreigners who register as living abroad for tax purposes – but that was far from the full story.

Similarly, the energy giants about to enjoy £9bn windfall profits must still be laughing at being told to give out a puny £100m extra to those struggling to pay their fuel bills.

First, the climbdown on those “non-doms”. Yes, the £30,000 levy survives, but only amid a flurry of concessions to ease the “pain” for people for whom that sum is a good night out.

Among the changes, they will not have to pay capital gains tax on UK assets held in offshore trusts, as long as the cash is not brought into Britain.

That will allow non-doms to continue to sell second – and third – homes through those trusts, those avoiding any tax on lucrative rewards from playing the London property game.

Mr Darling also abandoned plans to include the days a person arrives and departs from Britain within the maximum of 90 days they can be a “resident” without losing that precious non-dom status.

That neatly allows the Monaco jetsetters to commute in on a Monday, leave on Wednesday, claim just one day’s residency – and live a life of Riviera luxury, while paying no tax.

As Nick Clegg, the Liberal Democrat leader, said: “It will be no more than a flea bite for foreign billionaires who have come to regard the UK as nothing more than a tax haven.”

Of course, Mr Darling is not cutting his tax take to take account of this generosity – he simply expects the middle-class to pay up while the Monaco mega-rich ski, sunbathe and hit the casinos.

In the same vein, I would love to hear him explain how £100m will help all those now living in “fuel poverty” – Age Concern says there are 2.25m pensioners alone.

* FIVE years ago last night, I reported on the momentous Commons vote that ensured Britain joined America on the road to Baghdad – and the bloodbath that followed.

A good moment to remember the Labour MPs who saw through the Downing Street lies and stood firm against unprecedented arm-twisting from the warmongers.

Joe Benton (Bootle), Peter Kilfoyle (Liverpool Walton), Eddie O’Hara (Knowsley South) and Bob Wareing (Liverpool West Derby) bear no blame for Blair’s biggest blunder.