The chancellor can do little but carry the can for his predecessor over the 10p tax rate row. But business owners with disgruntled staff are unlikely to feel that sympathetic towards him
It can’t be much fun when your predecessor is also your boss. Normally if you’re in a new job and something cocks up, you can get away with blaming the last bloke at least once. Our darling chancellor has no such luck. His predecessor is now the prime minister, so he is forced to carry the can alone. Even worse, his boss appears to have filled the can very close to the top. Only the surest of hands would be able to move it without spilling some of the contents on his suit, and Darling doesn’t look that sure to me.
Once again tax is the issue (see CGT for previous Treasury shenanigans). Brown’s decision to abolish the 10p tax rate last year has finally come home to roost. When it was first announced Labour MPs were oddly quiet, even though it was going to be their constituents that would be at the sharp end of it.
Your lower paid staff (anyone under £18,500) are just about to find out how much worse off they are. There’s nothing more demoralising if not antagonising for those on lower wages than seeing their pay packet reduced. It is estimated about 5 million people are going to be hit. That’s a hell of a lot of disgruntled people – no wonder Labour MPs are in open revolt. Indeed, for the government, the timing couldn’t be much worse. Many people will first see their new pay packet on April 30 and there’s the council election the next day. Personally, I predict a higher turnout than usual and a lot of anti-Labour protest votes.
But for you, as an employer, regardless of your political stance, this isn’t good. You haven’t lower your wages but your staff are going to have them docked. Such things are not good for morale, so expect a few unhappy faces this month and be prepared. However at least, unlike the chancellor, you are allowed to blame the prime minister.
