'No tax rise to tackle crisis'

David Ottewell

September 22, 2008

Alistair Darling

CHANCELLOR Alistair Darling moved today to reassure the public over claims taxes might rises to deal with the current financial turmoil.

Mr Darling said people were hard-pressed and it was not time to be taking money out of the economy.

"This is not the time to be imposing additional burdens. It is right that we take action to ensure that some of the things that have gone very wrong on the banking side are put right. I am determined that we get through this difficult time despite the fact that we really are facing very difficult conditions. I am confident we will get through it."

In his speech to the conference, Mr Darling paid tribute to Gordon Brown as the right man to steer Britain through global economic woes.

The Chancellor admitted the world faced 'very uncertain times' as the global credit crunch hit banks on both sides of the Atlantic and beyond.

"What I am certain about is that we have the right prime minister and the right team to help the country through them," he said. "I can promise you that wherever weaknesses are found in the financial system, I will take steps to deal with it.

"But this is a global problem - and it will require global solutions. Not a knee-jerk reaction but a measured response."

Mr Darling offered reassurance over Britain's long-term economic prospects while setting out his view of what had gone wrong.

And he slammed Tories for wanting to `walk away' from problems while governments all over the world were taking measures.

"If you want one symbol of how the world has changed it is a Republican administration nationalising two of the biggest mortgage banks in the US," he said.

Mr Darling used Manchester as an example of the economic boom of the past decade.

" Someone visiting today for the first time since 1997 simply would not recognise the place," he said.

Mr Brown was getting further support today in the form of a taped address by Australian prime minister Kevin Rudd.

Mr Rudd said British global leadership `of the type I have seen for more than a year from Gordon Brown' is important to the whole world.

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Robert Tocker (22/09/2008 at 11:50)

No he will not rise taxes,he introduce NEW ones,just like brown did.How can you trust a man that never smiles.Never trust a Labour conference statement,after a couple of weeks they always go back on their word.

Malcolm Amersham (22/09/2008 at 11:54)

He says people are hard pressed but labour still want to introduce a &7.00 a day congestion charge on us.This mans speaks with forked tongue.Brown holds the record for introducing the most amount of new taxes on the British public.Darling is not his own man,he has to do what Brown says.

PW, Manchester (22/09/2008 at 12:35)

It's just as well, as I've got no more to hand over to them. He was hoping that the people of Manchester would embrace the toll tax, to give him his excuse to rob every other city. A snowflake's chance in June!!

S P In exile, Tameside (22/09/2008 at 12:42)

Next there’ll be telling us there is a Father Christmas.
Oh! Yeah am I going to believe this government when their tenure has been built upon spin and lies, they lied about the Iraq war, we were promised a referendum on Europe, we the people of Manchester were promised a casino, Manchester had the big bang in the bag till Blair withdrew it. Labour can never be trusted in what they say or do as the old Indian says they speak with fork tongue.

This is a party that have lost all integrity and credibility in what they do and say extra taxes has been their answer to everything, green taxes are not helping the environment there just topping up the coffers. The next motto Labour should adopt at the next election is if we can’t ban it then we’ll tax it that would be nearer the truth than the load of old tosh they have tried to brainwash us with over the past 11 years.

Hamish Macbeth, Whitefield (22/09/2008 at 12:49)

""And he slammed Tories for wanting to `walk away' from problems"" - just a little hypocrytical Darling.
You are going to leave the next Government - the Conservatives with a MASSIVE borrowing bill to pay back.
But then - you have nothing to lose and everything to gain by bankrupting the country and setting the Tories up to fail - you may be able to be back in power by 2014 !

Rammylad (22/09/2008 at 13:11)

No new taxes???????

I thought he was about to laden the people of manchester with a £1.2bn loan and a £2k, £3k, £5k annual travel tax per person.

shayla (22/09/2008 at 13:37)

NEVER is there a good time to try to squeeze more money out of the workers of this country!

And you want to tax us to actually get to work now.

Maybe all the people who choose not to work, should be made to push the cars of the workers to work! It would keep them fit, save fuel and environment, and save the poor worker some money!

Give us a break!

Chuckster, Cheshire (22/09/2008 at 13:51)

This is history spookily repeating itself....in 1979 we had an incompetent, ineffectual bunch of Labour Invertabrates running the country who to managed bankrupt us and send the country free falling into the economic and social Abyss.....it took many many years of hard work and tough decisions by the Tories to get the contry's finances back on an even keel. In 1997 the British public stupidly voted in a Labour Government....had you taken leave of your senses ? !!!Once again nearly 30 years later be are back to square one, the country is skint, the Labour Government of the day are every bit as useless as the previous one back in the 70s. To anyone who voted for these plebs I say tough !!!. Bring back Mrs T

Donna. Harpurhey (22/09/2008 at 14:57)

No ? What does he call the Congestion Charge Tax planned for the Labour stronghold of Greater Manchester. We'll see if its still a stronghold come next election day.

wilkie, glasgow (22/09/2008 at 17:24)

Labour will raise taxes at every oppertunity, that is what they do best.
I wouldnt trust a word that any of these sleaze and corruption party members say.
Call an election Maggie Broon or are you too sh*t scared
to give the electorate the chance to finaly ger rid of you.

Chris Green, Chorlton-cum-Hardy (22/09/2008 at 17:52)

Should we be grateful that we're not going to have even more taxes imposed on us?

I'm not concerned what the chancellor won't do but I am concerned about what he will do. It's all very well him attacking the Tories and trying to rouse the party faithful but, after eleven years of a Labour government, who is it helping?

Fortunately, Darling isn’t in the habit of issuing sound bites so we won’t have anything like the following to ponder:

They used to say something about an “ethical foreign policy….”

and anti- corruption with “whiter than white….”

John Prescott's "integrated transport policy"

remember “no return to boom and bust….”

reassuringly “tough on crime, tough on the causes of crime….”

The last is the best with Harriet Harman wearing a stab proof vest when she travels around her constituency, Jackie Smith fearing to go out after dark and, on the front page of today’s MEN, “You’ve every right to feel unsafe…”

Big Blue CITY,The Arabian Knight,Sharif Azul Celeste., Manchester (23/09/2008 at 00:07)

I just thought I would post some facts about how the economy works and give an insight for those who don’t understand why we may be having these problems we are at the moment.

Stock market drops have preceded the beginning of recessions

Generally an administration gets credit or blame for the state of economy during its time. This has caused disagreements about when a recession actually started. Maybe the cat should have come out of the bag by now?

Newspapers often quote the rule of thumb that a recession occurs when real gross domestic product (GDP) growth is negative for two or more consecutive quarters.

A recession may involve simultaneous declines in coincident measures of overall economic activity such as employment, investment, and corporate profits.

Recessions may be associated with falling prices (deflation), or, alternatively, sharply rising prices (inflation) in a process known as stagflation. A severe or long recession is referred to as an economic depression. Although the distinction between a recession and a depression is not clearly defined, it is often said that a decline in GDP of more than 10% constitutes a depression

Economists at the International Monetary Fund say that a global recession would take a slowdown in global growth to three percent or less. By this measure, three periods since 1985 qualify: 1990-1993, 1998 and 2001-2002. International Monetary Fund has recently lowered its 2008 global growth projection from 4.9 percent to 4.1 percent (as measured in terms of purchasing power parity).

There is significant speculation about a possible U.S.A. recession in 2008. If it happens, it is expected to have a global impact. U.S. represents about 21 percent of the global economy. Impact of a U.S. recession can spread though the following:

Less spending by American consumers and companies reduces demand for imports.

The crisis of the U.S. subprime-mortgage market has pushed up credit costs worldwide and forced European and Asian banks to write down billions of dollars in holdings.

Dropping U.S. stock prices drag down markets elsewhere.

A few other countries have seen the rate of growth of GDP decrease, generally attributed to reduced liquidity, sector price inflation in food and energy, and the US slowdown. These include the United Kingdom, Japan, China, India and the eurozone.

S P In exile, Tameside (23/09/2008 at 01:21)

This story was soon of the lead in the online news, what is the matter MEN to many negative comments about your beloved Labour party.

Ronnie Silver (23/09/2008 at 09:23)

There is a saying in the middle east,"Never trust a British Labour minister or a scorpion,both will bite you when your back in turned"

Donna. Harpurhey (23/09/2008 at 10:15)

Remember it was Alistair Darling when Transport Minister who introduced a proposed extra £1800 a year out of the workforce of Greater Manchester's wage packets with his Congestion Income Stealth Tax Charge.
He couldn't care less whether this £1800 comes out of a minimum wage packet so don't believe a word that falls out of his mouth.
Just get off your backsides at the local and national elections and vote these Labour losers out.

Jay B, oldham (23/09/2008 at 14:15)

so thats the con charge tax rise scrapped then mr darling?

i doubt it! they know they'd loose millions of pounds in interest repayments that we'll all be paying for.

Still a no from me.

Ace Shakepseare, manchester (23/09/2008 at 15:58)

No they are not going to tax anybody ""YET"" they will borrow billions to show how well they are doing and then in five years time they will tax you all out of pocket to pay the massive debts they have put us all into...LABOUR NOTHING CHANGES. BORROW BORROW BORROW .And then out of power for ten years this ia how our political system works in britain..........its garbage.

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