How the newspapers have covered the Redwood-Wolfson report

The Daily Mail

Headline: Tories unveil blueprint for big cuts in taxation

Key quotation: “David Cameron is to woo middle-class voters at the next General Election with promises to reduce the tax burden on the individual - but hit car and air travel through "green" levies… Shadow Chancellor George Osborne risked inflaming Right-wing traditionalists by warning that the pledges could be paid for only with increases in environmental taxation.  He said the Conservative manifesto could not offer an "up-front" reduction in the overall tax burden.”

The Sun

Headline: Thumbs-up for Tory tax axe

Key quotation: “Radical Tory plans to cut taxes and slash red tape won massive backing last night.  Senior MP John Redwood was hailed for outlining a raft of measures to win over hard-pressed voters… Shadow Chancellor George Osborne hailed the report as “impressive and comprehensive”.  He pledged to look “very carefully” at the blueprint — but warned that any tax cuts would have to be offset.  Mr Osborne said: “Any reductions in specific taxes will have to be balanced by higher taxes elsewhere — most notably green taxes. We are not going to be able to offer an overall reduction in tax at the General Election.””

The Times

Headline: We’ll pay for any cuts in taxes by imposing green levies, say Tories

Key quotation: “After a week in which the party high-lighted a policy group report calling for massive reductions in the burden of tax regulation and the abolition of inheritance tax, George Osborne, the Shadow Chancellor, dampened expectations by saying that the party would not be offering overall reductions in taxation. Any tax cuts that were identified would be balanced by tax increases elsewhere, such as green levies, he told a City press conference.”

The Independent

Headline: Osborne rebuffs Redwood's plans for tax cuts

Key quotation: “Mr Osborne made it clear there would be no overall reduction in taxation under a Tory government and warned that a forthcoming Tory "Quality of Life" report on the environment, led by Zac Goldsmith, will propose a range of compensatory green taxes.”

The Guardian

Headline: Tories fight 'toxic' mix of tax and red tape

Key quotation: “After a week of pre-publicity, John Redwood, a Thatcherite outrider in David Cameron's team, unveiled a sweeping package, from reduced mortgage and labour market controls to traffic light rules that would allow cars to turn left on a red. Significantly, he also threw the Tory right's weight against the "lethal and toxic" mix of Brownite taxes and regulations. But George Osborne, the shadow chancellor and party leader, marked the unveiling of the report with a strong note of caution. The Tories would not fight the next election on the promise of an "upfront tax cut".”

The Daily Telegraph

Headline: Tories plan green taxes to replace death duty

Key quotation: “A raft of "green taxes" will have to be imposed to pay for abolishing death duties, the Conservatives said yesterday.  George Osborne, the shadow chancellor, confirmed yesterday that inheritance tax could be scrapped or reduced by an incoming Conservative government.  The Tories also hinted at other potential tax cuts for "Middle England" voters, in line with a policy review arguing that high taxes were holding back Britain's economy.  Mr Osborne made clear that cutting or reducing inheritance tax would have to be offset by "higher taxes elsewhere, most notably green taxes."

Financial Times

Headline: Tories plan tax cuts to woo voters

Key quotation: “The Tories will shortly issue plans to raise green taxes and to fund cuts to inheritance and income taxes designed to woo floating voters at the next election, said George Osborne, the shadow chancellor, on Friday.”

On today's Platform Matthew Sinclair welcomes the Redwood report and hopes that the Tories will embrace it.

Comments

[George Hinton]

Oh wonderful, so environmental..eco...taxes will fund any cuts elsewhere in exchequeur revenue streams.
Well that at least gives the lie, that eco-taxes are effective, or have anything to do with the environment and saving planet earth. They're just another tax, official Tory policy.
That will at least make things difficult for Gordo Darling to continue the band wagon of fiscal theft under the justification of Saving Planet Earth/Countering Global Warming/Reducing Carbon Footprints.

[Oberon Houston]

Well, this has risen the issue of taxation levels in a good and thoughtful way. We need to build on this and put the pressure on Brown over this.

[BorisforPM]

"George Osborne, the shadow chancellor and party leader"

Have I missed something?!!

[bluepatriot]

The party has reminded voters that - at heart - we are a taxcutting party but we have not actually committed to any cuts that might harm economic stability. This has been very well handled by George Osborne in particular.

[Simon Denis]

Let's just get on with it and cut the taxes. All of them. It worked in the eighties. Was our stalinist health monopoly any worse than it is today? No. Admittedly we'd have to tell the many "outreach officers" and "equality monitors" that their services would no longer be required. True, we'd have to pay them a dole. But its better than giving them a great deal of public money for activities which are, for the most part, paranoid and counterproductive. Let us be truly and awesomely radical. La Rochefoucauld observes that it is passion which convinces people. Piddling, pusillanimous compromise of the kind pedalled by Osborne - have you noticed, by the way, his newly cockneyfied delivery? - serves to dishearten the faithful and swell the ranks of the opposition. It is the first law of politics that you must believe in yourself and in your own real opinions. Subtlety is a secondary tool. Courage and strength come first.

[Oberon Houston]

Simon, are you the right-wing equivalent of Citizen Smith?

Power Brother!

[Cleo]

Upfront tax cuts will be a gift to Labour and the public won't vote for it.

[Traditional Tory]

bluepatriot - The party has reminded voters that - at heart - we are a taxcutting party but we have not actually committed to any cuts that might harm economic stability.

Er...isn't that what we were always supposed to be before Dave and George started to play the 'Tax Cuts Bad' mood music?

As far as I can see, that remains pretty much the party line under Osborne.

This has been very well handled by George Osborne in particular.

Well naturally, bluepatriot. Weren't you the one who was plaintively asking if anybody knew David Cameron's view on some or other issue that was being discussed the other week?

I assume that was because you were worried you might put your foot in it and post something which contravened the party line.

As for socialist Cleo, if she thinks a taxcutting policy is likely to be disastrous for the Tories shouldn't she be encouraging it?

[Cleo]

I am now a socialist?

[Tony Makara]

Sounds to me like the team are getting the balance right. Of course everything will have to balanced and costed as George Osborne rightly says. I like the idea of green taxes as our environment is being trashed. Any chance we could have a tax on plastic carrier bags Mr Osborne? I'm sick of seeing then in my garden, tangled up in trees and they injure animals too.

[Cleo]

Green taxes are absolutely the way to go. Use the taxation system as an incentive to lead more sustainable lives and to protect the environment not as a disincentive to work hard and save.

[MrB]

This is quite a good move by the party leadership. Certainly one of the best in a while (although that wasn't going to be difficult!).

It will appeal not only to the "Middle England" electorate, threatened by this terribly unfair tax but also right wing elements that generally favour tax cuts. It may also attract the left wing and floating voters who would normally be frightened by promises of tax cuts. They will be reassured by the fact that the cuts will be funded and also that they will help the environment.

Hopefully we'll see more of this "big tent" building in the next few weeks.

[John Scott]

People do now feel overtaxed. I would prefer an income tax reduction and large reductions for small businesses, because this would increase incentives in the economy. Inheritance tax abolition would not and we will be accused of tax cuts for the rich. Labour will simply increase the threshold to, say, £500K and that will take away most of the political sting.

All that said, Redwood is to be congratulated for putting some much needed 'meat' on the bones.

The fear now is that the Gummer/Goldsmith report undoes all this by proposing taxes on everything that moves. Environmental taxes are an economic non-starter because if they are successful Treasury revenues fall and then you have to put up taxes elsewhere. There are also so many unintended consequences with eco-taxes. It would be like depending on wind power for the country's energy needs: it is neither economically sustainable nor available with certainty in sufficient quantity.

What we should be doing is encouraging new technologies, R&D and such like, not discouraging international travel in an age of globalisation and international trade.

But that will be tomorrow's battle....

[Mr Angry]

Redwood's radical and appealing proposals make sense and have received a good press from most papers. But not of course the BBC, Guardian or Independent so no doubt that means Cameron and Osborne will quietly can them. Unless they start to understand that the Tories will never capture the institutionally anti Tory liberal dominated media outlets, but that what really counts are the Sun and the Mail and the many many ex Tory voters who have simply stopped voting at all, then we're going nowhere. And if the Conservative party does not start to commit to some genuinely conservative policies then I can't see the point of continuing to work my butt off to get them into power. I want to see an end to the Social Democratic politically correct faux consensus, not its continuation by a party that is supposed to be opposing that failed political soma. Boris for Mayor though is another matter, he's got my vote.

[Philip]

To be credible to non-core voters, while we aim to cut taxes and are naturally a tax-cutting party, we must put economic stability before tax cuts and reassure that any tax cuts would not hurt public services. Therefore:

1) Answer Labour scares that we would decimate public services by pointing out Labour’s ward, A&E and maternity unit closures and redundancies among front-line NHS staff etc after all the extra tax-payers’ money they poured into the NHS, and continuing decline in education standards. After this record, people must be more open to the idea that tax cuts can be made while still improving public services because we could spend the money more efficiently?

2) Make the moral case for reducing the tax burden on the individual, and on beneficial things like marriage, but pay for this by increases on less desirable things such as alcohol, and environmentally less friendly car and air travel. (Contrast with the Government’s stealth tax on environmentally more friendly rail travel due to fare rises to pay for the premiums the Government forces train companies to pay the Treasury). If eco-taxes both encourage more environmentally-responsible behaviour while at the same time off-setting other tax cuts, that seems sensible to me. I thought there was a general principle that taxes on spending were better than taxes on income – people would still have more of their money to spend how they wish.

3) Abolish injustices like inheritance tax and the BBC tax.

[MH]

So marvellous, Boy George says he might think about cutting some taxes, whilst whacking up others so that we who live in the country and who have no rural bus service and need to use our cars get shafted. No wonder the Party's associations are dying in the shires.

[Opinicus]

I am not sure that i have read the same papers as everyone else.
The Daily Mail was as enthusiastic about the Party as I have seen it for years and the Telegraph's line was a good idea spoiled by Osborne.
The right wing press is aching to come home and find a warm fire but DC and Osborne are determined to keep a cold house.
The PC line taken by people above is a westminster village lie. It does not get more true, the more often it is told; it just convinces more fools.
This is 2007 not 2001 and Labour has destroyed its "Tory cuts" weapon by spending billions on the public services for nothing. The public wants someone to talk about tax cuts (esp IHT). They dont want green taxes instead, they want public service reform.

[John Scott]

"...we must put economic stability before tax cuts and reassure that any tax cuts would not hurt public services".

Please can we nail this one? There is no contradiction between economic stability, low taxes and high quality public services.

Today we have high taxes, public services that are not delivering value for money and economic instability (just look at inflation bouncing around, stock markets, pension deficits, interest rates, etc).

On the NHS we should be embracing the Darsi review of London NHS services and, if anything, taking it further. To become the party of the old NHS, where performance was measured on the number of hospital beds rather than the quality of service provided, will do us no favours politically. We need an NHS which is more local and more responsive to patient needs.

On eco-taxes, Richmond Council has, I believe, introduced a tax on large vehicles that are parked outside homes all day. All this has done is incentivised people to drive everywhere so they don't pay the tax - thereby increasing emissions.

On IHT it would cost £4billion per year (and rising) to abolish. If we want to cut taxes, it would not be my priority. Increase the threshold and cut income and business taxes.

I am really worried that the Party sees eco-taxes as a "way out" of the "sharing the proceeds of growth" slogan. It is not. It will be a noose around the neck of every candidate that Labour will use to accuse us of taxing holidays, businesses and hard working families. We also have no way of knowing how much revenue they will generate because we do not know to what extent behaviour will change or whether people will just "pay up". Therefore, we cannot even promise with certainty any investment on the back of them.

They are an economic and political non-starter.

[Scotty]

The report is also a very useful tool to highlight some of Labour's failures.

I like the idea of sharing the proceeds of growth, but I would add that emphasis should be put on helping ease the burden of tax on lower to middle income families will be a priority in future where possible.
We need to keep highlighting the way that Brown has relied on the lower and middle income bracket for his stealth taxes, and that big business has been helped at the expense of smaller companies.
For too long Brown's tax regime has *helped* the very rich while he has tried to make poorer working families more dependent on the State. We just need to keep on banging the drum that this is an unfair and cynical way to treat a group of striver's.
A simple and fairer tax regime would have been the best way to reward people who want to work and provide for their families. Instead we have family tax credits, the cost is mind boggling, the mistakes unforgivable.
But the cynical way that Brown calculated that he could save money at the expense of this group in the last budget was just bl**dy mean. He knew that many will not be able/willing to risk claiming his disastrous WFTC! He wanted to wrong foot Cameron in his grand moment, and he chose to do it by hurting lower income families.
Labour are coming out with the usual attacks about Tories lurch to right, public services will be slashed and black holes in the finances opened blah blah blah.
We need to come back and keep highlighting how Labour have been determined to block people who strive to work and save. If you are one of his cronies you save millions, if you just want a decent savings plan or a pension and you earn under 25,000 forget it.

[Sam S]

Green taxes are a good idea provided that they don't raise the overall burden upon citizens.

Provided they work in same that progressive taxation works to redistribute some income to the poorest, they will be a success.

[The Huntsman]

A propos the thread, I noticed that the BBC was rather more circumspect than usual yesterday with their reports. On one programme one felt that the presenter was on such unfamiliar ground (never having knowingly been impartial before) that she did not know how to ask the next question, so tentative was she.

Paxo was really quite nice to our bod on Newsnight and rude to Labour's usual Gnome, though rightly so as said Gnome was determined to do a PPB instead of answering Paxo's question.

It won't last of course, so one must just treasure the moment.

Labour have put on the 78 rpm of "lurch to the right" which, whilst entirely predictable,has got stuck and is going to pall quickly if they do not also manage some reasoned criticism.

If one was to chance one's arm,I would say the coverage has actually been rather better than I expected.

[Tony Makara]

"For too long Brown's tax regime has *helped* the very rich while he has tried to make poorer working families more dependent on the State"

Very true Scotty. The tax credits scheme was designed specifically to make working people dependent on the state. It has created a half work/half benefit scenario for millions. Tax credits must go. Through tax credits it ts possible to get more money out of the state when working than when unemployed. Very Alice in Wonderland! For all their preaching about helping the poor while in opposition, no government has hit the poor harder than this Labour government. The poor can't even find a dentist. The Conservative party should guarentee NHS dentistry for every person who needs it.

[Scotty]

"Paxo was really quite nice to our bod on Newsnight and rude to Labour's usual Gnome, though rightly so as said Gnome was determined to do a PPB instead of answering Paxo's question.

It won't last of course, so one must just treasure the moment."

It was a nice change, what struck me most was that we ended up having a debate about the fact that Brown might nick some of the policies he deems might appeal to the voters.
Normally when we raise the issue of tax, the discussion is immediately turned into a debate about the direction of the Conservatives, not the policies or scrutiny of the governments strategy or performance.
This leaves us defending our selves from a position not even part of the debate, while Labour attacks us comfortable in the knowledge that there is no scrutiny of their own policy or performance.
We end up with no debate and the media compliant in its aid of Labour spin. Not a very healthy state of affairs for ordinary voters.

"For all their preaching about helping the poor while in opposition, no government has hit the poor harder than this Labour government"
Agreed. No government has done more to try and grind lower paid striver's into State dependence. Any family working and earning between £15-25,000 is being squeezed and battered from all sides by this governments unfair tax/dependency policy. It is a disgrace!

[Traditional Tory]

Green taxes are a good idea provided that they don't raise the overall burden upon citizens

Surely the main point of 'green' taxes is not to raise revenue but to deter potential polluters.

If the green taxes 'work', therefore, little or no money will be raised.

It theresfore seems inappropriate to lump these in with normal taxes.

[ToMTom]

Electoral Calculus

Current Prediction: Labour majority 108

[ToMTom]

Electoral Calculus

Current Prediction: Labour majority 108

[voreas06]

Traditional Tory "Surely the main point of 'green' taxes is not to raise revenue but to deter potential polluters.

If the green taxes 'work', therefore, little or no money will be raised.

It theresfore seems inappropriate to lump these in with normal taxes."

I am confused Traditional Tory you seem to be saying it is a bad thing that people might pay less tax by avoiding green taxes and therefore it is innappropriate to lump them in with other taxes.

Surely if you are a traditional right wing tory as you always tell us you are you would appreciate a tax cut however it came about. If not then could you just maybe have a different political outlook entirely from a traditional tory. Certainly your above argument sounds exactly like the Labour party line.

[clive elliot]

If there are to be 'green'taxes, the best one would be to put VAT on all packaged food. Anything sold wrapped in plastic, tins, non-returnable bottles, or processed, + 17.5%. The only VAT-free food should be natural foods such as fresh meat, vegetables, bread, nuts, rice etc. that you buy loose and take home in a paper bag.
FIVE benefits:
1. Help market traders and traditional shopkeepers
2. Encourage healthy eating
3. Reduce unneccessary packaging, save oil and paper (trees), reduce landfill
4. Won't cost the really poor anything
5. Generate huge tax revenues that can be used to abolish IHT if you like, or make material reductions in income tax.

How about it, George?

[Traditional Tory]

I am confused Traditional Tory you seem to be saying it is a bad thing that people might pay less tax by avoiding green taxes and therefore it is innappropriate to lump them in with other taxes.

No. I am saying that if the Green taxes achieve their primary objective - to deter polluters from polluting - there will be little or no revenue to enable Osborne to cut other taxes, given that he seeks to balance one with the other.

I personally incline to the view that by cutting taxes unconditionally you will generate more wealth creation, thus leading to more tax revenue and more money for the NHS and schools.

That's the Tory way, but Wee Georgie Osborne doesn't seem to have caught on.

[voreas06]

Traditional Tory "No. I am saying that if the Green taxes achieve their primary objective - to deter polluters from polluting - there will be little or no revenue to enable Osborne to cut other taxes, given that he seeks to balance one with the other."

He seeks to be revenue neutral at the Election, however over time he seeks to share the proceeds of growth in other words there may be more funds available for tax cuts, depends on growth.

Traditional Tory "I personally incline to the view that by cutting taxes unconditionally you will generate more wealth creation, thus leading to more tax revenue and more money for the NHS and schools."

I fail to see how targetting tax cuts violates your belief in generating more wealth and as a plus you should for example cut carbon emmissions thereby not having to spend money achieving CO2 reduction targets.

[Traditional Tory]

The Telegraph also says:

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/18/ccom118.xml

David Cameron managed a honeymoon period without ever getting hitched. Quite an achievement. Instead, he's jilted voters, left, right and centre. Clever strategic games to win the middle ground have failed, as Gordon Brown's commanding poll lead reveals.

With an early election in the offing, it's time for some policies rather than endless vague positioning.

But just as some come along, courtesy of John Redwood, it's telling how uncomfortable George Osborne, the shadow chancellor, has become with the language and sentiment of real Tory initiatives. The shifting in his seat was almost audible on yesterday's Today programme when being pressed on the detail of Redwood's plans.

The report itself contained laudable ambitions: cuts in corporation tax, a red tape bonfire (always a soft target, difficult for meddling politicians to deliver, though) and the abolition of inheritance tax.

Redwood gets to the heart of the problems facing British business. Taxes that have risen relentlessly in scale and complexity have been compounded by the equally taxing level of red tape.

How depressing, then, that the moment the report's findings were unveiled, the shadow chancellor undermined them by refusing to commit to them. It is not the first time George Osborne has done so.

He commissioned Lord Forsyth to produce a lengthy report on overhauling the tax system but then pointedly said he had no plans to cut taxes. Such behaviour looks increasingly perverse, and it is hitting a bum note with business.

The Tories' response to such criticisms is that, were they to commit to these policies, Gordon Brown would steal them anyway.

It's a weak excuse, given that the chance of Brown abolishing inheritance tax is as likely as him inviting Peter Mandelson over to Chequers for lunch.

If Cameron and Osborne really are Tories (which I sometimes doubt), they should be more confident about cutting our high taxes. All they need do is install some decent management to shake up the NHS and the Redwood plans would be paid for in a trice.

[email protected]

[voreas06]

damian Reece "All they need do is install some decent management to shake up the NHS and the Redwood plans would be paid for in a trice."

It is hard to take this man seriously when he says decent management is the solution to all NHS problems. The current government has spent the last ten years putting layer upon layer of management into the NHS and frankly that is the problem. The rest of the article basically says Osborne is not a proper tory for not immediately accepting all Redwood's proposals. Even if he liked them all, and I think he liked a fair few, do you not think immediately saying I accept all the proposals might just undermine the other policy groups. It seems to me Damian Reece does not live in the real world.

[Scotty]

Yeah Trad Tory, we have heard all before.
If the tories aren't promising swinging tax cuts then they are not Conservative in the right wing press.
Move over to the other side of the coin and we have the Polly Toynbee's preaching that by even mentioning a tax cut then the Conservatives have lurched to the right and therefore will start destroying every public service we have blah blah blah.
As I said no debate, just endless insults!

Still Trad Tory, you will be happy because you would rather a Conservative Leader in opposition running a debating society on hot air while we have Socialist in No10. You must really be happy with NO tax cuts just an ever bloated State.

[Blue Ches]

"You must really be happy with NO tax cuts just an ever bloated State."

Is Cameron promising anything different?

[Scotty]

"Is Cameron promising anything different?"

Yes, I think he is. Brown has used the middle to lower income earners as a constantly laying golden goose in tax revenue right throughout a period of supposed economic prosperity!
No where in that time has he advocated sharing the proceeds of this growth with the nation, instead using the extra revenue to make big spending announcements which adhere to his socialist dream of wealth distribution before elections. He does not trust us to spend these proceeds wisely or deems anyone above a certain wage bracket to be entitled to any return.
As a result we don't have a nest egg on standby for a downturn in the economy and we are saddled with a frightening amount of debt. It would be reckless of Osborne to make promises on tax cuts until he is behind the desk of No11 and has seen the books, both sets which lay out our full debt!
So please don't try and tell me that Cameron, Osborne or any high ranking Conservative minister is the same as Brown simple because they advocate caution at this time.

[Raj]

This would certainly be a reason for me to vote Conservative at the next election. I don't drive or engage in especially "polluting" activities, though I'd be willing to pay an extra £10/£20 or so if flying long-haul.

But only if income tax is prioritised - reducing inheritance tax won't benefit the economy enough in my opinion. That should be a secondary aim. Go for income tax and corporation tax first.

[TomTom]

reducing inheritance tax won't benefit the economy enough in my opinion.

But your opinion is wrong.

There are lots of small businesses secured on property. If the owner dies both the business folds as bank collateral is sold to pay IHT. It is a tax on substance not profit.

Anyone who argues for taxing family homes on death must argue for taxing family homes during life.....such as imposing CGT as in the USA on house sales or an Implied Rent Tax.

Simply imposing 40% tax on every £1 over £285,000 nett is expropriation since no Corporation pays 40% tax, nor does any Private Equity Group, nor anyone winning the lottery.

But have a business with loans secured on a home and 40% is expropriated and must be paid UP-FRont before Probate is granted for which additional bank loans are required

[Stephen Tolkinghorne]

"If there are to be 'green'taxes, the best one would be to put VAT on all packaged food."

Absolute rubbish. Tax the supermarkets and producers, if you're going to tax anyone. That way, they won't produce it.

Mind, wouldn't levying taxes on packaged goods be distorting market conditions and thus be against EU competition rules ? Yes, it would.

Therefore, you're going to find it difficult to levy any taxes on goods, without specific EU approval.