Gordon Brown

This article is about the British Chancellor of the Exchequer. For the rugby union player of the same name, see Gordon Brown (rugby player)

Chancellor of the Exchequer

On taking office as Chancellor, Brown sprung a surprise by giving the Bank of England operational independence in the conduct of monetary policy, and thus responsibility for setting interest rates. On fiscal matters, he is regarded as having an unusually strong influence over the details of the government's spending plans. While he has adhered to Labour's election pledge to make no increases to the standard or higher rates of income tax, the conjunction of his decisions to align the national insurance threshold with the income tax threshold and then increase the national insurance rate without regard to the upper earnings limit by one percentage point has had substantially the same effect except for investment income and pensions in payment. This action, together with the increase in the tax share of national income on a cyclically adjusted basis, accounts for the recurrent accusations that Brown has faced of imposing "stealth taxes".

Related Topics:
Bank of England - Income tax - National insurance - Stealth tax

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He is widely viewed as less enthusiastically pro-euro than most in the Blair government, and apparent rifts have occurred between him and more europhile members of Cabinet (such as Peter Hain and Jack Straw).

Related Topics:
Euro - Europhile - Cabinet - Peter Hain - Jack Straw

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Brown's lengthy period as Chancellor of the Exchequer has set several records. He is the longest-serving Labour Chancellor of the Exchequer (ahead of Denis Healey, who was Chancellor for 5 years and 2 months from March 5 1974 to May 4 1979). On 15 June 2004, he became the longest continuous serving Chancellor of the Exchequer since the Reform Act 1832, passing the figure of seven years and 43 days set by David Lloyd George (1908–1915). However, William Gladstone was Chancellor for a total of 12 years and 4 months in the period from 1852 to 1882 (although not continuously). As he has commented upon on several occasions, his Chancellorship has overseen the longest period of sustained economic growth in the UK.

Related Topics:
Denis Healey - March 5 - 1974 - May 4 - 1979 - 15 June - 2004 - Reform Act 1832 - David Lloyd George - 1908 - 1915 - William Gladstone

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In May 2004, opinion polling suggested that Labour would only win a parliamentary majority at the next general election if Gordon Brown were leader instead of Tony Blair1. In the same month John Prescott and Brown attended a ceremony in Scotland to commemorate John Smith and were photographed sitting together in a car. It is speculated that Blair and Prescott agreed some form of pact and Prescott claimed that tectonic "plates" are "shifting", but in October 2004 Tony Blair announced his intention to serve out a full third term. The resignation of David Blunkett in December 2004 damaged one of Brown's main challengers in a prospective leadership contest and so revived speculation over a leadership succession. Brown has for some time promoted the cause of acting to reduce Third World debt and following the Asian Tsunami Disaster this has positioned Brown well inside the curve of popular opinion in the UK. Political controversy over the relationship between Brown and Blair in advance of the prospective UK general election, 2005 continued into January 2005.

Related Topics:
Opinion poll - General election - John Prescott - David Blunkett - Third World debt - Asian Tsunami Disaster - UK general election, 2005

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The two appear to have temporarily put their differences behind them in order to win the 2005 election, frequently appearing on the campaign trail together. The Labour party has even produced an election broadcast, showing the two debating policy and making jokes about their 'troubled' relationship.

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On 11 April, 2005 Brown was listed in Time Magazine's annual list of 100 Most Influential People in the World. Interestingly, his sometime friend and sometime rival, Tony Blair, was not included, despite holding a nominally more important role. This could be attributed to the widespread expectation that Brown has no serious rivals as the next UK Prime Minister.

Related Topics:
Time Magazine - 100 Most Influential People in the World

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