Tuesday, 5 October 2010
Child Benefit
Has George made a bit of a Horlicks? Did he misread the anticipated reaction? It would appear so as any number of Tory and LibDem supporters are appalled by George's announcement. Whereas I agree Child Benefit should go for those earning over £44,000 I do see that it is unfair to them if it continues to be paid where both parents earn say £43,000 each. Can this anomaly be resolved without means testing? It seems not but compensation is likely to be forthcoming through the introduction of transferable tax allowances between spouses. I had thought the transfer of allowances between spouses was a dead duck as a result of the coalition. Apparently not, even though the LibDems are said to be against the policy. George is reckoned to be a first class political tactician, so was this a tactical ploy to make it difficult for the LibDems to continue their resistance to the transfer of tax allowances policy now that a number of their members are losing Child Benefit and want compensation? More likely George was trying to smoke out Ed Miliband or maybe he was trying to do both! Whatever the reasoning Horlicks appears to be the answer at this stage.
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