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The 2p cuts in the basic rates of income tax and corporation taxes masked a higher-than-expected budget deficit and increased forecasts for future public borrowing.
The average family was pounds 900 a year richer, pensioners were pounds 1,400 better off, basic rates of income tax were the lowest for 70 years, and the number of homeowners was up by a million.
However at the last General Election, Labour reaffirmed its 1997 manifesto pledge not to raise the top or basic rates of income tax.
SCOTTISH Secretary Donald Dewar yesterday pledged that a Labour administration in the Scottish Parliament would not raise the basic rates of income tax