Osborne Signals Plans For New Fiscal Framework Under Tory Rule

By Jason Gorringe, Tax-News.com, London

10 September 2008

The UK's Shadow Chancellor, George Osborne has this week pledged to introduce a new fiscal framework, if the Conservative Party is elected to government.

In an interview with the Guardian on Monday, the Shadow Chancellor argued that Labour's "economic incompetence" would "cast a long shadow" over Britain, not least in the form of a large budget deficit.

Osborne went on to pledge changes to the tax and spending rules put in place by Labour, in line with recent announcements regarding Tory tax plans.

The Shadow Chancellor's remarks came just days after an announcement by the Conservative Party that it would raise the inheritance tax threshold to GBP2mn per couple, if elected.

If implemented, this would represent a threefold increase in the current threshold for inheritance tax within the United Kingdom, and tops Chancellor Alistair Darling's suggested increase to GBP700,000.

Also on the subject of tax, late last month, following the launch of a new Tory report entitled 'An Unfair Britain', Osborne revealed that a future Conservative government would not seek to raise the top rate of income tax to reduce income inequity in the UK, but would instead focus on initiatives to allow the lower paid to keep more of their own money.

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