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UK Prime Minister Vetoes Short-Term Tax Cuts

by Robert Lee, Tax-News.com, London

17 October 2001

During a speech to public sector workers in London this week, UK Prime Minister Tony Blair claimed that he does not intend short-term tax cuts to form a part of a major government strategy to modernise public services.

'I do believe...that people can be persuaded that they have to pay for good public services. I do not believe the public is any longer fooled by the notion of short-term tax cuts at the expense of longer-term investment - it is these bread and butter issues...on which the government will quite rightly be judged,' said Mr Blair.

The PM declared that there were two choices: either to allow the public to pay for the services individually or to pay collectively via taxation. In view of the fact that most people are unable to afford private health and education fees, Mr Blair said 'I prefer the latter route.'

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