Tories Hail Ireland's Low Tax Policies As A 'Shining Example' To UK

by Jason Gorringe, Tax-News.com, London

27 February 2006

While Conservative leader David Cameron has stressed that economic and fiscal stability must be the Party's first priority before tax cuts if elected, a recent "listen and learn" visit to Dublin by Shadow Chancellor George Osborne suggests that the party is keen to emulate the low tax policies which have made Ireland Europe's economic success story in recent times.

Attacking Labour's tax and spend policies, Osborne highlighted how the Irish have managed to raise living standards, attract international investment, and expand economic growth by investing in education, boosting research and development spending, and slashing business tax levies.

Corporate tax in Ireland is 12.5%, compared with 30% in the UK.

Speaking in the Irish capital, Mr Osborne accused UK Chancellor Gordon Brown of hindering Britain's ability to compete with emerging economies such as China, India, and Brazil as a result of his economic policies, which he argued are "wedded to the past".

"Our Chancellor's response to globalisation is to block much-needed reforms, and give us an ever rising tax burden, and an ever growing welfare state," he observed.

Mr Osborne went on to state that in contrast, Ireland stands as "a shining example" of what can be achieved by cutting business taxes.

"That is why companies like Google, Intel, Apple, and Oracle have all chosen to locate their European operations in Ireland not Britain," he noted.

"With its vision of a highly-educated, innovative, open, dynamic, low-tax economy, and relentless focus on the long-term drivers of prosperity, Ireland's economic miracle has shown that it has the right answers to the challenges of the new global economy. We in Britain would do well to listen and learn from our Irish neighbours," he added.

However, party leader Mr Cameron has signalled that the forging of a low tax economy would be the Party's ambition "over time".

"When it comes to the economy, I am absolutely clear that stability and responsibility come first, second and third as our priorities - and that they come before the commitment to cut taxes," he told the Financial Times last month.

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