Short Term Tax Cuts Ruled Out

Chancellor George Osborne has ruled out tax cuts until the government are in a position to do so, he told delegates at the Conservative Party conference.

He has been urged by the opposition to cut VAT and has been under pressure from some members of his own party to abolish the 50p rate of income tax.

But he said during his speech that it would be wrong to borrow money to fund temporary tax cuts.

He said, ‘We would be risking our nation’s credit rating for a few billion pounds more, when that amount is dwarfed by the scale and power of the daily flows of money in the international bond markets, swirling around ready to pick off the next country.”

“We will not take that risk. We are in a debt crisis; it is not like a normal recovery. You can’t borrow your way out of debt.”

And he added: “I’m a believer in tax cuts – permanent tax cuts paid for by sound public finances.

“Right now, temporary tax cuts or more spending are two sides of exactly the same coin, a coin that has to be borrowed – more debt that has to be paid off.”

Ricky Steedman
1 reply
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    Ross says:

    a brilliant summing up of the lengths the likes of Osborne are prepared to go to ensure our country’s deficit doesnt get out of control. there is no point in taking that heavy risk for the sake of a few billion which to some would be a great deal but to men of character such as osborne, even if they have a history of brutal reorganisation, this sum is a paltry amount and in the wider context of the UK economy which is arguably the cornerstone of the Eurozone along with Germany it is not a dreadful loss to face the harsh but fair postponment of these current tax cuts given the domestic storms and foreign affairs issues we have weathered in the past with this same kind of confident ease

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