Gordon Brown Rules Out Income Tax Hike

by Jason Gorringe, Tax-News.com, London

02 October 2001

Speaking on breakfast television on Monday, the UK Chancellor Gordon Brown ruled out the possibility of an increase in income tax to fund the fight against terrorism and money laundering. 'We promised that in the general election, and we are determined to keep our promises,' he explained.

Despite Mr Brown's confidence that his public finance policies have created a position in which the government is able to meet spending pledges, there is increasing pressure on the government to introduce a raft of new security and other measures in the wake of the terrorist attacks in the United States, and there are certain to be difficult decisions ahead for the Chancellor in terms of raising the revenue to pay for them.

Since September 11th Labour backbenchers and trade unions in the UK have been calling for tax increases to protect the government's commitment to higher public spending against the possibility of global recession, which has been exacerbated by the US attacks, but Mr Brown has rejected these calls, and stated on Sunday that he has not ruled out the possibility of extra government borrowing.

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