5pm Update: George Osborne has given a response to today's Telegraph story about the Conservatives supporting the 45p tax band in a webchat he has just done with the Manchester Evening News. Here's what the shadow chancellor had to say:
"What's actually happened is that Labour announced last November
that it was increasing the top tax rate for those earning over £150,000
to 45 percent. What we've said is that, given the desperate state of
the public finances, that is a Labour tax rise we will find it
difficult to avoid. What we will be doing is also bringing public
spending under control so that Britain lives within its means. Let's be
clear: we have to deal with the economic mess that Gordon Brown has
created - and in doing that today's Conservatives are not going to
punish the poorest in our society unfairly. Everyone, the rich
included, have to bear their fair share of the burden. I wish the
economic situation were different, but sadly it is as it is."
---
There is much coverage in this morning's papers of the speech David Cameron made yesterday on public spending, which was covered here on ConservativeHome.
But as Peter Riddell points out in The Times today, there was a "big omission" in terms of any explicit statement form Mr Cameron as to whether he would increase taxes in order to cut debt.
However, the splash in the Daily Telegraph today would appear to give an unequivocal answer to that question, headlined as it is: "Tories will raise tax rates for top earners".
It continues:
"The Conservatives will go into the next election committed to raising the top level of tax to 45p for those earning more than £150,000. David Cameron signalled that the rich would have to pay “their fair share” to rescue the economy from the mounting crisis in the public finances. It was made clear that hundreds of thousands of top earners would face paying the new rate — which Labour will also introduce after the election if they hang on to power — if Mr Cameron enters Number 10."
"Senior Tory sources believe that the 45p tax rate is now necessary if the party is to fulfil its other pledges to reduce public debt and continue to maintain front-line public services such as health and education. One source said: “We do not like it but, given the current finances, we cannot pledge to avoid it.”
Recent Comments