UK Opposition Leader Puts Tax Cuts At Fore Of Election Campaign

by Amanda Banks, Tax-news.com, London

09 May 2001

In his first interview of the UK general election campaign, Conservative leader William Hague has told the Financial Times of his aim to make 'very clear and radical plans for tax reduction'. It is set to be one of the three main issues during the election battle, the others being the fight against crime and saving the pound.

If elected Mr Hague has promised a cut in annual taxes by £8 billion within his first three years of office. Comparing his tax reform plans to those of the US president, George W Bush, Mr Hague said they 'are not that different' given the relative sizes of the UK and US economies.

Tory plans also include 'sharp reductions' in the capital gains tax and increasing the width of bands for income tax payers in the higher brackets. Mr Hague said his plans were focussed on the idea that the state should consume a smaller share of the national wealth. Further plans to reach this goal involve major reforms in education including university funding and the creation of privately-owned schools within the state sector. But when asked to comment on just how much the level of public spending should be as a ratio of the gross domestic product, Mr Hague declined to answer, just saying, 'we believe in a smaller state . . . that is very much our philosophical direction.'

Speaking at the Tory party's campaign centre at Conservative Central Office this week, Mr Hague said: 'We have had four years in which class sizes have got bigger, waiting lists have got longer and taxes have gone up. If people want the chance to hit crime hard, to keep taxes down, to improve their schools then this is their chance to do so.'

Although opinion polls are predicting another Labour landslide, an optimistic Mr Hague said he believed his party would be victorious, stating: 'I certainly believe we can win, after all we have done well in all recent elections and we have the opportunity to win.'

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