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Top Tories Back Away From Tax-Cutting Agenda,
by Amanda Banks, Tax-News.com, London
Wednesday, August 22, 2007
The leadership of the UK's opposition Tory party continued to back away from
John Redwood's tax-cutting plans outlined in the party's Competitiveness Review,
as shadow Chief Secretary to the Treasury Philip Hammond told the BBC's Newsnight
on Monday that the Tories considered Redwood's recommendations as just 'good
ideas'.
Redwood has proposed the abolition of inheritance tax, and reductions in stamp
duty and corporation tax, alongside a bonfire of regulations including the scrapping
of IR35 and Managed Service Company regulations. Opponents say that the changes
could cost up to GBP21 bn, but supply-sider Redwood says that the tax reductions
could more than pay for themselves.
Although at the launch of the programme, George Osborne, Conservative party
shadow Chancellor of the Exchequer, committed the party to adopting it, he and
other senior figures have made it clear that the party would not reduce the
level of taxation in the early years of a Tory government, frightened of seeming
to back any threat to the UK's range of sanctified public services.
Redwood's proposals have been welcomed by a wide range of commentators as well
as being vilified by the left. Professional Contractors Group chairman David
Ramsden said: ''These proposals by the Conservatives show recognition of the
importance to the UK of its vibrant freelancing sector and we welcome that as
positive progress. IR35 is not only unworkable and unfair, it is also intensely
resented by the tens of thousands of freelancers who feel as though they are
often treated as criminals when in actual fact they are making an enormous contribution
to the economy. PCG hopes that now the Tories have put abolition of IR35 on
the agenda, other parties will engage in a sensible debate too."
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