I hate people who say "told you so"

But I'm a hypocrite. That's two character flaws in one. But I've got nothing on Labour MPs, making the extraordinary claim that they've only just noticed the abolition of the 10% rate of income tax. Gordon Brown announced it, out loud, in his final budget on 21st March 2007, near the end, just seconds before his dramatic income tax cut announcement which was lauded by all the newspapers as a masterstroke.

And I blogged it that afternoon because I was in a bad mood.

Wednesday, 21 March 2007.

Tax rises for the poor and small businesses

Why are socialist MPs cheering Gordon Brown? He cut the basic rate of
income tax from 22% to 20% and raised the top income tax threshold dramatically
from £34k to £43k, so people on high incomes will benefit. But he abolished the
10% tax rate, so people earning £9000 a year will see their income tax bill more
than double. The net tax cut is only £1bn and it hits the poorest in favour of
the rich.

He cut the headline rate of Corporation Tax from 30% to 28% so big
employers will see a cut in their tax bill. But he raised the small business
rate from 20% to 22%. This means that small companies, who don't have capital
assets, supposedly at the cutting edge of the knowledge economy, (I should
declare an interest - like mine), will see their tax bill go up. It makes us
less likely to employ people, just at the time we are trying to expand.

David Cameron was supposed to be embarrassed by the surprise income tax
announcement. But he wasn't. Gordon Brown clearly doesn't understand the
difference between tactics and strategy. The battle of ideas was conceded in
that smug moment. If the government can cut taxes and increase spending, then
Labour's biggest stick for beating the Conservatives is broken. If Labour MPs
cheer tax cuts for the rich at the expense of the poor, what is the point of the
Labour party?

I'm still asking. At the time, the Budget was widely seen as securing Gordon Brown's place as the unassailable candidate to replace Tony Blair. I suspect Labour MPs are also regretting that part of the deal. They really do deserve everything they get.