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UK Tories Abandon Tax Cuts In Favour Of Public Services

by Jason Gorringe, Tax-News.com, London

09 October 2001

In an astonishing volte-face, the UK Shadow Home Secretary, Oliver Letwin, has announced that the Conservative party would not even consider the issue of tax cuts until new policies for the improvement of services such as health and education had been put in place.

Mr Letwin caused unwanted controversy for the Tory party during this year's election campaign when he suggested that the Conservatives had plans to introduce over £20 billion of tax cuts if they were successful in the general election. However, in an interview with the Independent, he denied that the Tories had put tax before public services. 'It is certainly the way we let it be seen,' he admitted 'and we have learnt from our errors.'

When questioned over whether the Tory party might enter the next general election without a pledge on tax cuts, Mr Letwin confirmed: 'That may very well turn out to be the position. It has to be driven the other way round - by public services,' and added that his desire, said to be shared by the new Conservative leader Iain Duncan Smith, for the share of national income taken by the government to be reduced to 35%, may turn out to be 100 years in the future.

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