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| Tuesday, 26 March, 2002, 12:19 GMT Budget 'leak' angers MPs ![]() Brown brings good cheer for business
It may be Easter, but business and the City may be forgiven for thinking Christmas has come early. On Monday transport secretary Stephen Byers suddenly announced he had changed his mind and Railtrack shareholders would get a �300m handout from taxpayers after all.
In a further attempt to reassure big business about the government's direction, he has released details of �1bn worth of tax cuts for them. Meanwhile, Labour backbenchers are becoming increasingly infuriated by the government's apparent lack of interest in their concerns. Most of them couldn't be bothered to turn up for Mr Byers' statement on Monday of course - probably because, after a nod and wink from the whips, they believed it was OK to start their holidays early. Jobs boost But their anger has been eloquently expressed by the likes of former minister Peter Kilfoyle and backbencher Ian Gibson. The chancellor's announcement, in a written answer in the Commons, has only intensified their irritation. The measures are not new, having first been floated in the pre-budget statement last November. And this year's budget is unusually late, on 17 April, so the chancellor was eager to announce his proposals before the end of the financial year in five days time to allow business to plan. And, he would no doubt argue, the measures will help boost productivity and jobs. One beneficial spin off may be that, when the real budget does come, the chancellor will be able to concentrate on the big concerns of financing the public services. Drop in support But it is the impression, once again given, that the government is more interested in keeping in with business and the City rather than its own MPs or the unions that is causing the problem. It has not been a happy few months for Tony Blair and New Labour. There are serious signs of growing rebelliousness on the backbenches, the opinion polls have shown a dramatic drop in support and ministers appear to have lost control of the agenda. It is no surprise, therefore, that just about everyone in government is breathing a huge sigh of relief that they are off on their holidays for a couple of weeks. When they get back, they hope things will look a little rosier. |
See also: 26 Mar 02 | Business 25 Mar 02 | Business 27 Nov 01 | Scotland | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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