Be bold Chancellor

At least that is what one economist wants.

Amid all today's reports about what the Chancellor has or hasn't got to cut,Tony Dolphin Senior Economist at the ippr advices the following.

He should announce a £1,000 increase in the personal tax allowance and increases in benefits and child tax credits to ensure that the Government achieves its goal of halving the number of children in relatively low-income households by 2010-11. This will cost about £10 billion a year.
He should announce tough limits on the growth of public spending from 2010-11, while making it clear that extra resources will continue to be made available for priority areas such as education, health and childcare. Major projects, such as the replacement of Trident submarines, will have to be cancelled.
He should reaffirm the moral case for progressive taxation to finance public spending. He should increase the top rate of tax to 50 per cent for taxable incomes of more than £150,000. At the same time, to ensure the rich pay their fair share of taxes, there should be a major clampdown on tax avoidance, tax reliefs and tax havens.
He should announce plans to examine the feasibility of a tax on carbon emissions and a land value tax.