The Tories spending plans do not add up
In one of his weird letters to the British people in today's Sunday Telegraph, Conservative leader Michael Howard says that he is going to increase pensions, and that all the Tories' proposals are 'costed'.This is simply not true. As I noted in this post the Conservatives spending and taxation plans do not add up.
To explain again, they have told us they a) intend to cut borrowing to £16bn in 2006/2007, b) they intend to cut £35bn of Labour spending and have £23bn of new spending and c) reduce taxes by £4bn.
They have also told us that they believe borrowing will be £39bn in 2006/2007, not the £25bn the Treasury estimates (they are so confident of this they are calling on Labour to say which taxes it plans to raise).
Thus a) will cost £23bn, b) will save £12bn, and c) will cost £4bn. Overall then there is a gap of £15bn.
As I asked last time if anyone, Conservatives or not, can see a flaw in this reasoning and can back up Michael Howard's claims then I'd love to hear it. I emailed Oliver Letwin, but he has not replied.
posted by Matthew @ 2/20/2005 07:23:00 PM
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