Edward Leigh is Conservative MP for Gainsborough and Chairman of the Public Accounts Committee. With John Hayes he leads the Cornerstone Group of Tory MPs.
Now that the dust has settled over Gordon Brown’s Budget, the Conservative Party should recognise that it has the greatest opportunity in a generation to champion the case for lower taxes.
Of course, I am well aware that we have fought the last two elections on a promise to cut taxes. The scale of our proposals was modest – only £4 billion or about one per cent of total taxation under Michael Howard in 2005.
But that did not stop Labour running its well-tried and tested big lie that the heartless Tories were planning to shut half the schools and hospitals in the country so that they could fatten the wallets of their rich friends.
Brown’s Budget has changed all that. By reinventing himself as a tax-cutter, Labour will no longer be able to advance its moronic but plausible argument that you cannot cut taxes without putting doctors and nurses on the dole.
What is sauce for the goose is sauce for the gander, Gordon. If you can unveil a 2p cut in the basic rate of income tax without putting schools and hospitals at risk, so the Conservatives can come forward with their own ideas to ease the pain of a tax burden, which is now as high as it was in the 1970s when Denis Healey was making the pips squeak.
Fortunately, David Cameron has not turned his back on tax cuts. He has spoken of sharing the proceeds of growth between higher public spending and lower taxes. It is a perfectly sensible formulation. The only issue is who gets the lion’s share.
I believe it should be the downtrodden taxpayer and that efficiency gains, also accepted by Brown as a legitimate source of revenue, should be used to safeguard service delivery in the front line. My fear is that the Conservative Party, badly scarred by its failure to make headway last time, will make the mistake of fighting the last war and commit itself to a relatively feeble programme of tax cuts, all but indistinguishable from those of a Brown-led Labour government.