| Fate of Prime Minister Brown is up in the Air |
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Beginning earlier this month, many Britons saw a dramatic increase in the amount of taxes they pay. Considering that the Labour Party, which currently controls Parliament, has historically been viewed as being friendlier to the poor when compared with the other major party, the Conservatives, many politicians and citizens have begun to speculate that some of Labour’s constituents may abandon the party in upcoming local elections on May 1st which are to be held in England and Wales. The change in tax rates was originally applauded in March 2007 when Prime Minister Gordon Brown, then Chancellor of the Exchequer, announced a drop in the basic tax rate from 22% to 20%. To accommodate the drop, though, the government also had to abolish the lowest tax rate, 10%, which was applied to the country’s poorest citizens. Earlier this month with the advent of a new tax year, the changes went into effect, and now many officials in the Labour party are worried about their political futures—positions once considered to be safe. Because the government scrapped the 10% tax bracket, the drastic increase has already begun to negatively affect the salaries of the country’s lowest paid citizens, especially young workers—a blue-collar force once seen as the party’s backbone—and the elderly. Less than one month into the new tax system and shortly before a new budget has to be approved, these workers have already begun an outcry to their legislators, who are now scrambling to turn the ear of Prime Minister Brown. As next week’s parliamentary vote on the budget quickly approaches, frustrated lawmakers appear to have enough members to reject the new budget proposed by Brown and his cabinet, who are now scrambling to make concessions. Alistair Darling, the current Chancellor of the Exchequer, has announced that, to help low-paid workers and the elderly, the government would increase winter fuel payments, give tax credits, and increase the minimum wage. If these proposals aren’t received well enough and the budget is rejected, Brown, his government, and the Labour Party could suffer. Brown, who succeeded Tony Blair as Prime Minister in June 2007, rejected holding new elections in the fall after he had entered office. As a result, next week’s vote on the budget is widely seen as a confidence vote. George Pendle, a Labour lawmaker who isn’t supporting Brown, cautioned that “The fact is that if the budget goes down, if this key clause goes down, then I don’t think the government can survive.”
-Jonathan Mason
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