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.”