British Democracy Forum - View Single Post - Tories: Taxes 'must rise to pay Brown debt'

Anthony Butcher · 22-11-2004, 03:00 AM

Quote:

The tories are preparing to fight the next election on the threat of big tax rises during a Labour third term after the latest figures showed that Gordon Brown faced a £10 billion "black hole" in the nation's finances.

While Tony Blair will use tomorrow's Queen's Speech to focus on security and personal safety, the Tories will seek to put the economy centre stage in what is expected to be the last parliamentary session before a May election.

Yesterday the Conservatives underlined their commitment to cutting taxes by outlining plans to exempt most first-time home buyers from stamp duty and making the tax fairer for people buying more expensive homes.

Oliver Letwin, the shadow chancellor, said the duty was a "classic Labour stealth tax" that was particularly hard on first-time buyers.

Since Mr Brown became Chancellor in 1997, the economy has been one of Labour's strongest cards, with he and Mr Blair claiming credit for low inflation, low interest rates and low unemployment.

Independent economists have said in recent weeks that the Chancellor is likely to break his own tough fiscal rules and that tax rises or spending cuts will be needed unless the public finances show a sharp improvement.