Tory package of £21Billion Tax cuts confused and irresponsible

2.00.00pm UTC (GMT +0000) Thu 19th Oct 2006

The Conservative Tax Reform Commission has reported, recommending £21 billion of tax cuts. The Commission proposes cutting the basic income tax rate, raising the earnings threshold for income tax, cuts in business tax and the abolition of inheritance tax. The Tory Shadow Chancellor said he would adopt some of the ideas but said other changes - such as higher green taxes - would mean the overall tax take would not be cut: "We will not be promising reduction in taxation at the election. Any changes in taxes will be revenue neutral."

Vince Cable, Liberal Democrat Shadow Chancellor said "Tory tax plans are confused, incoherent and lacking any credibility. They offer £21bn of tax cuts but don't say who will pay for them. These plans would make the tax system even more unfair. Their rhetoric of compassionate conservatism has been entirely undermined by the reality of their true blue Tory tax cuts for the wealthiest in society. The Tories claim to be in favour of environmental taxes, but until there is flesh on the bone they will not be taken seriously."