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Tories hint at tax cuts and halting rise in NI payments
Nicholas Cecil, Chief Political Correspondent29.12.08
SHADOW chancellor George Osborne is talking up tax cuts as the Tories and Labour dig into traditional battle positions for a general election.
He has signalled that reversing a rise in National Insurance planned for 2011 will be a "priority" if the Conservatives win.
The Tories are also looking at tax breaks for pensioners and savers hit by the downturn as they bid to shake off the "do nothing party" tag given to them by Gordon Brown.
Last month Chancellor Alistair Darling set out plans to increase NI payments by workers and employers by 0.5 per cent from 2011, raising up to £5 billion to help pay off government debt.
But Mr Osborne used a weekend interview to float the idea of tax cuts and warned that Labour's reckless spending was turning Britain into the "sick man of Europe".
"My priority is to try to reverse the increase in National Insurance because it is a tax that affects the vast majority of people in Britain," he said.
Treasury minister Angela Eagle accused him of "empty promises" and Labour MPs are warning that public services would be cut under the Tories.
Reader views (2)
If Osbourne reversed the increase in NI then how would he make up for the revenue lost?
As for tax cuts well how will they be funded?
Anyone in opposition can promise the earth but in power things are different as Londoners who use public transport will find where there 11p cut in Council Tax will be funded by a massive increase in fares. In fact take one bus trip using Oyster Pre-Pay which is rising by 10p and virtually all the tax cut will be wiped out.
- Melvyn Windebank, Canvey Island, Essex
Osborne gets his much needed publicity by claiming a desire for tax cuts, that he and we know full well he would never impose if the Tories ever did come to power again
- Keith Price, Luton, England
