Monday, November 24, 2008

Labour's Tax Bombshell

A Budget aimed at the pockets of Britain’s families.
Today’s announcement was a £20 billion temporary tax giveaway, then almost £40 billion of announced permanent tax rises – that’s almost £1,500 for every family. Hidden in the small print is another £100 billion of unspecified tax rises to come.

Labour’s Chancellor, in one move, has doubled the national debt to more than £1 trillion, and borrowed more than at any time in our history.

A Better Way…

Conservatives have repeatedly made the point that Gordon Brown failed to fix the roof when the sun was shining. This means we went into the recession with the largest budget deficit of any major economy.

We should:

Introduce an independent Office for Budget Responsibility that would make the budget forecasts and hold governments to account; and

Reduce the growth rate of spending in 2010-11 and future years below the levels currently forecast by the Government.

We need radical new approaches to get credit and money to start to flow again, including the establishment of new institutions to underwrite lending so that businesses can get the money they need. These measures could include government guarantees for new business lending, provided at a fee to protect taxpayers. And because the underlying fiscal position is so poor, a borrowing binge would only add to our problems in the near future. It would force the government to raise taxes, placing a bombshell under any recovery.

24th November 2008

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