Tory Hopeful Davis Calls For Lower Taxes

by Jason Gorringe, Tax-News.com, London

04 July 2001

Contender for the Tory Party leadership in the UK, David Davis, has promised that lower taxes and improvements in schools and hospitals will be at the top of his agenda if he is elected to the post. Mr Davis, whom some are calling the 'untainted' candidate, spoke to a breakfast meeting in the City recently as part of his campaign to succeed William Hague.

'The Conservative Party must not make the mistake of turning its back on one of our core beliefs - that the state should do less and take less from the individual - simply because we fear that it is currently unfashionable to argue for lower taxes,' he said. Mr Davis told the assembled business men and women that he believed the political landscape would change over the course of the new parliament, and spoke of excessive taxation and regulation as the 'hidden anchors' that are already beginning to drag on the UK economy by reducing investment in public services.

The former corporate troubleshooter and Tory backbencher admits in his mission statement that the Conservative's last attempt to tackle Labour on tax was 'confused and half-hearted', and has stated his commitment to promoting the dynamic relationship between low tax and prosperity if he becomes leader of the party. Mr Davis believes that lower taxes will lead to faster economic growth, which in turn will lead to higher tax takes and the ability to cut taxes further, and to devote a greater proportion of spending to health, education, and law and order.

However, Mr Davis is not alone in giving this issue prominence; speaking last month, one of his rivals in the leadership race, Michael Portillo, talked of the desire to create a responsible society through lower taxation. 'A society that overtaxes leads people to believe that once they've paid their taxes they've done their bit,' explained Mr Portillo.

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