Tories Switch Emphasis From Tax Cuts To Public Services

by Justin Gorringe, Tax-News.com, London

26 November 2001

Speaking on Thursday, the UK Shadow Chancellor Michael Howard executed something of a U-turn on behalf of the Conservative Party, signalling a change of emphasis in party concerns from the lowering of taxes, to improving public services.

The Conservatives, who fought (and lost) the last election under the banner of tax cuts and euro-scepticism, have always been in favour of tax cuts and the reduction of the government's role, but Mr Howard's actions indicate that although the party still holds firm to the principle that lower taxes encourage prosperity, the Tories have finally realised that in the current political climate, to be seen to be sacrificing public services on the tax cut altar may not be quite the thing.

'We believe countries which tax less as a proportion of their GDP are the most productive countries and economies,' he explained. 'But our most pressing problem in this country now is to tackle the public services which are in such disarray and which matter so much to the quality of people's lives.'

Mr Howard hit out at the government, claiming that the money being spent on services such as education, health, and transport 'is not being spent effectively', and challenged the Chancellor in the run-up to his pre-budget report to turn away from the 'civil war' in Downing Street, and consider the burdens placed on British business by his economic policies.

Andrew Smith, Labour's Chief Secretary to the Treasury dismissed Mr Howard's change of heart, arguing that whatever the Tories claimed, they were still committed to deep cuts in public services.

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