Always nice to reference Blackadder. So, Alistair Darling has sought to dig Labour from a hole of their own making by raising the personal tax-free allowance by £600. Not only does this allow stupid people to think 'Oh good, I'm £600 better off' (when they're not) he's paid for it by borrowing £2.7billion - i.e. the country is going further into debt to dig Labour from this hole - one that anyone with any sense saw coming a year ago.
He is also going to 'lower the level at which 40p tax is paid - so higher earners did not gain from the change.'
Yep, and some more of the middle classes get moved into the top tax bracket.
It's a threshold raise for one year only (they 'aim' to continue the support, but....)
Of course, this is nothing to do with the upcoming by-elections. Oh no. Just as certain tax breaks made as 'one offs' had nothing to do with the general election in 2005. 'A one-off council tax refund of £200 for every household with a member aged 65 or older. Annual winter fuel payment of £200 for over-65s and £300 for over-80s' (source)
On the other hand, it is better to have a government which realises they've cocked up and seeks to put it right - but they've put it 'right' by increasing national debt. They could have saved a lot of cash by removing the expensive and also pointlessly invasive ID card scheme. A scheme which has the appearance of increasing, but doesn't substantially increase actual security. Scrapping this illiberal scheme would have also righted another mistake.
Yes, it's a tax break today (or rather it's removing a tax increase) - but it'll have to be paid for tomorrow.