UK Government Denies Tax Hike Plans

by Jason Gorringe, Tax-News.com, London

20 September 2002

The UK's government has this week been forced to defend itself against increasingly hysterical media and political reactions to Prime Minister, Tony Blair's pledge to 'continue to redistribute power, wealth, and opportunity'.

The mention of 'redistribution' in a speech made on Wednesday was seized upon by Labour hardliners and the Opposition alike as evidence that the Prime Minister intends to return the party to its old Labour roots by increasing taxation of the wealthy.

Michael Howard, Conservative Shadow Chancellor yesterday railed against the possibility of further tax increases, suggesting that: 'Hard-working families will be appalled that Tony Blair wants to pile on yet more tax increases on top of what he has already imposed. Labour is now taking £2,000 a year more in tax from every man, woman and child in Britain, but everyone knows that public services are getting worse and children are still being left behind.'

However, defending Mr Blair's speech on the eradication of child poverty, a Downing Street spokesman explained on Wednesday that the Prime Minister was 'not making a budget speech'.

'What he is describing is the cumulative impact of government policy. The cumulative impact is to give those at the bottom end of the scale more opportunity, more skills,' he added.

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