1+1 = 3

With the UK Budget just around the corner, it’s good to remind ourselves of the kind logic that is used in preparing the nations finances by New Labour.

In his pre-budget statement at the end of last year, Gordon Brown, UK Chancellor of the Exchequer, announced his plan to double the duty on flights from 1st February 2007– even if you bought your ticket months before.

Aware no doubt of the dubious legality of such a move, one that is being challenged in the courts, the government tried to dampen any opposition by describing the duty as a tax on airlines, not passengers.

Right, I get it. Tax the Airlines and the passengers don’t suffer. So, where does the money come from to pay for the taxation? The profits from the airlines. Where do the airline profits come from? Er, passenger revenues.

It is good to know that we have a man in charge of the UK’s finances, the man who wants to be prime minister, who is so in tune with the realties of the real world.