Gordon Brown has just started his monthly press conference. He started by talking about the economy - food and fuel prices. This is obviously not what we or the press want to hear and he is clearly trying to hold off the storm he surely knows is coming. He is going to face some very hostile questions from the gathered press. We want to know what bribes he had to offer his own MPs and the DUP to buy his victory in yesterdays vote on 42 days detention.
Nick Robinson got the first question and went straight for the jugular asking if any deals were done. Brown is denying outright that any deal has been done. I'll say right now that I believe he is a bare face liar. This will be the end of Brown if any deal is made public, and I am pretty certain that sooner or later, some some disgruntled MP or civil servant will talk. He will not leave office under his own steam - he will leave under a cloud and become Britain's Nixon.
Brown was asked whether he would cut the tax on fuel seeing as he is now taking a big chunk of money from the recent jumps in price. He waffled on, but did not say that he would cut the tax. He actually came out with what has become to be known as a "Brownie" - he said that the percentage of tax taken on fuel has actually reduced. If anyone can explain that one please feel free to tell me in the comments section.
You know, I'm going to stop now. He is just dodging every question. What's the point? Has anyone else noticed that he does not take follow up questions from reporters? That is a very smart move as he can spout any old rubbish (tractor production figures) and the reporter has to sit there frustrated, knowing that his well prepared question has been dodged.
I'll link to the video of the conference when it's put up on the BBC. That way you can watch him dance for yourself.
3 comments:
Right.
Let us assume wholesale price of fuel 50p/l. Duty 50p/l, vat 17.5% of untaxed value; total cost
108.75p/l, % tax 54.02%
wholesale price increases to 100p/l. total cost now 100+50=17.5 = 167.5p/l, % tax 40.3%
However, actual tax taken has increased by 8.75p.
The % decreases because the duty element is a fixed amount, thus as the price increases, this appears as an ever smaller percentage of the total cost, despite the fact that the actual take increases due to the VAT element being a percentage of the untaxed price.
Think I've got that right.
Cheers Harry,
Yes that's why I called it a "Brownie". The tax percentage has reduced, but as you have pointed out - the amount taken in tax has gone up. It's all smoke and mirrors. It is quite possible that the gullible will actually think that Brown has reduced tax on fuel.
Thanks for the tax explanation...I like many people know Brown's not being entirely honest (Gut feeling I suppose) but it's good to have it explained to those who's maths is not quite up to standard.
Brown didn't say that no deal was done but that he personally had not done a deal, which may be true but still another Brownie
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