One of Labour’s great new MPs has shown some good leadership on the economy, and written an open letter to George Osborne outlining some potential economic alternatives to the Tory-Lib Dem emergency budget.
Chuka Umunna, a member of the Treastury select committee, proposes four key measures that would help avoid the VAT rise:
* Increasing the bank levy to raise £2 billion a year or more.
* Extend the bankers’ bonus tax to raise £2.5 billion a year.
* Raise National Insurance, a progressive tax which would bring in £13.5 billion over the parliament.
* A Robin Hood tax, to raise “tens of billions”.
There is an alternative to the harsh and unfair budget, which will hurt the most vulnerable the most. I wonder whether George Osborne will respond to Umunna’s letter, and finally acknowledge that?