Whoops!
The Conservatives have got rather over-excited over the IFS's analysis of the government's finances.Michael Howard:
"Mr Blair should admit that he will have to put up taxes to pay for his spending plans. The only question is which taxes?
Oliver Letwin:
"There is now a simple question, which we will repeat and repeat until it is answered: "Mr Blair, which taxes are you going to raise? Will it be National Insurance Contributions again, or Income Tax, or VAT on food, or Capital Gains Tax on homes?"
There is a problem here, which both Howard and Letwin appear not to have noticed.
The Conservatives taxation and spending plans are based on the Government's taxation and spending plans.
If there is, as the IFS says, an £11bn shortfall, then that is going to impact on the Conservatives. Bye bye the £8bn tax cut.
What it really means is that both Howard and Letwin do not believe they will be in government after the next election.
posted by Matthew @ 1/27/2005 02:34:00 PM
Comments: 0
