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Ken Clarke hints at Tory tax rises for families to beat recession
Nicholas Cecil, Chief Political Correspondent17.07.09
Tory heavyweight Ken Clarke today raised the prospect of tax increases for millions of families as Britain struggles in the economic downturn.
The shadow business secretary appeared to hint that David Cameron may increase taxes within months of entering Downing Street, if he wins the general election expected in May.
He also suggested that the Conservatives under Mr Cameron risked appearing a "bit bland", and in words likely to delight Gordon Brown warned that setting out detailed public spending plans during an election debate filled him "with the greatest horror".
Mr Clarke electrified the tax debate by saying he is strongly opposed to higher levies on businesses during the country's economic difficulties.
"I do think if you're looking for tax increases in a recession, it's obvious that you don't look in the first place to business," he told The Financial Times.
Inevitably, his comments will be seen as suggesting that any Tory tax rises would hit families and other households.
The Conservatives could increase VAT, freeze personal allowances or increase green levies. Raising income tax would spark a huge row, but Mr Cameron has made clear that a Tory administration would have to take tough decisions, with deep cuts expected in some Government departments.
Mr Clarke also said that the Tories were in danger of being seen as a "bit bland" because of their cautious approach ahead of the election, but said "I accept personally that we have to be".
He appeared to support Chancellor Alistair Darling's refusal to hold a comprehensive spending review ahead of the election, saying: "The idea that you conduct a public spending round as part of a general election debate fills me with the greatest horror."
H
Reader views (12)
Well at least the multi-millionaires publix school twits will get cuts in their inheritence tax. Must get our priorities right.
Well we should remember that tory income tax cuts for themselves were funded by doubling VAT for the rest of us!
Anyway surely Ken Clarke is to left wing for the right wing that now controls the Tory Party who cant even get on with the main centre right parties in europe and have to join the fringe parties with their hair shirts.
- Melvyn Windebank, Canvey Island, Essex
Although this thread is about proposed increases in Tax for families, we also need to encourage investment or else families and others, wont have any jobs to go to.
This country is being bled to death by ‘Excessive Taxation’. We need to encourage people to invest into the UK not push them away with the currant 65% Tax on any money you bring into this 'God Forsaken' place from off shore accounts.
Signed Carl Barron Chairman of agpcuk
- Carl Barron, Christchurch, Dorset
A lot of cuts need to be made, MP's expenses, long term unemployment, child tax credits, spending on Iraq and Afganistan wars. Also cut or freeze council taxes and remove elements from it that only certain groups of people benefit from (pay for what you use or own)
I would be happy to pay a fair income tax increase but without the 100 odd Stealth taxes that El Gordo brought in, 25% basic rate wouldn't be so bad then.
Also remove or cut stamp duty on houses to much lower levels. Remove stamp duty on share purchases. Abolish Inheritance tax and Capital Gains tax (this lot doesn't amount to much)
Lastly increase spending on the NHS before it is too late. The powers that be in the UK for the last 30 years have totally screwed us over and have made multiple financial mistakes by acting first without putting their brains into gear.
Lastly shut the doors now, if we have 70 million living here soon this country will be totally finished.
- Frank Bell, London, England
It is not going to be easy. We are in serious depression after the Nu Labor economic crisis and we have nothing left in the state coffers.
- Jacqueline, Hampstead, London
About time those who breed pay for their offspring out of their own pocket.
This Taxpayer has had enough of supporting others who are actually less needy.
- Cap, London
Clarke has done it again!Surely Osbourne/Cameron would make such a statement about the inevitable tax hike when the real figures are known.Lose cannon Clarke must keep on the radar.....somehow.
- Tithonus, Athens Greece
Anil Chatterjee, Manchester - keep up your misguided jabber about Kenneth Clarke being "useless as a minister", then switch off your New Labour spin pager, take a deep breath and reflect with wide eyes upon your Government of halfwits, chancers and charlatans.
- Ted, London
Surely the largest Tax rises must be placed on those who have increased their salaries and bonuses way above the rate of inflation in the last twenty years. However any move in this direction leads to claims of penal taxation leading the Masters of the Universe moving abroad. Osborne and Cameron agree so it is the lower earners who got stuck with below inflation pay rises who will get stuck with huge Tax rises while the Pigs continue to feed from the trough with Dave and George smiling on them.
- R Roebuck, Acton England
Why are politicians STILL thinking we are all thick? It is time for honesty as obviously they are above themselves and wonder why we don't trust them. Stop lying, all of you, because we see through you! Honesty is the best policy, every time. Tell us the good and often the bad news, honestly and without pregudice, and you will be re-elected. Quite simple and shows strength of character.
- Rod, Epping, UK
They know something we don't know. Britain is in very bad shape.
- Georgie, Islington, London
We could of course start with all the Tax breaks that these thieving MPs get.
- Frank, Home Counties, England.
Kenneth Clarke was useless as a minister, and is now trying to make a name for himself ahead of the next General Election. I hope people are not taken in by this overweight, over-blown buffoon.
- Anil Chatterjee, Manchester
