The News of the World reports that all major Tory tax cuts have been mothballed - some until 2020:
"The tax allowance would be worth around £20-a-week and would cost a Tory government £3.2 billion if it was applied to all married couples. That is now not even expected to be introduced in the first term of a Tory government and could be a decade away. Sources insist the party is still committed to the policy but it could be downgraded to a token payment until the economy recovers."
I have just been called and told to treat the story with a ton of salt but I would have a lot of sympathy for George Osborne if he chooses to delay the tax
cuts that he promised during more benign times. Projections by the Centre for Economics and Business Research (CEBR)
think tank, and recorded by The Sunday Times, identify a need for £100bn of fiscal tightening. The
CEBR postulates that the Conservatives will cut spending by £80bn and
raise taxes by £20bn. Such tax rises would be devastating for
Britain's economic recovery.
ConHome cannot support tax
rises so long as the Tory leadership continues with the policy of spending on the NHS as
if it was still 1997. Tax rises should only be put on the table once all possibilities for getting spending under control have been exhausted. Last week we had the crazy position of Shadow Health Secretary Andrew
Lansley ATTACKING Labour for forcing the NHS to make efficiency savings and not immediately spending those savings.
The policy of increasing NHS real spending is opposed by 68% of Tory party members (see piechart within this post).
Tim Montgomerie
