Tories Hit Back At Labour Profligacy With 'Responsible' Tax Cut Proposals

by Robert Lee, Tax-News.com, London

12 November 2008

David Cameron, leader of the UK's main opposition the Conservatives, has unveiled the party's much-anticipated proposals for tax cuts, which, he argues, would give tax relief to hard-pressed businesses and families while not adding to the government's mountain of debt.

Under the Tories' revenue-neutral plans, tax cuts worth GBP2,500 per person, per year would be given to employers who hire new workers who have been unemployed for three months or more in a move that would create an estimated 350,000 new jobs over the next year.

In total, GBP2.6bn of tax breaks would be given to employers, and this would be paid for using the money saved on welfare payments.

Cameron called on the Labour government to adopt this scheme as soon as possible, stressing: "Instead of the government paying for people to be unemployed, it can pay for them to be in work."

He said there was a "clear choice" between unfunded "tax cons" from Labour and "fully funded" tax cuts from the Conservatives, and outlined their proposals to help Britain's families and businesses, including: a 2-year council tax freeze, paid for by cutting back on government advertising and consultancy fees; reducing the inheritance tax and stamp duty nets on family homes and first-time homebuyers by introducing a levy on non-domiciles; allowing small businesses to delay their VAT payments by 6 months; and cutting payroll taxes for the smallest companies.

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