Latest Public Sector News

12.07.13

No tax rises to meet deficit – Osborne

Tax rises will not be needed to meet deficit reduction targets after 2015 if the Conservatives win the next election, Chancellor George Osborne has stated.

Borrowing could be cut by spending cuts alone, he said.

“Tax increases are not required to achieve [further consolidation]”, Osborne said, and this “can be achieved with spending reductions”.

He added: “I'm a low-tax Conservative who believes we could have lower taxes, but I think they should be sustainably lower. I'm not for deficit-financed tax cuts, that you end up having to increase taxes later to clear up the mess you have made of the public finances.”

Lib Dem leader and deputy minister Nick Clegg told BBC News: “I actually think there should be some increases in taxes for people at the very top.”

Shadow Treasury minister Chris Leslie said: “The reason why there's still going to be a big deficit after the next election is George Osborne's total failure on growth in this parliament.

“This economic failure means the Government's plans will have to be Labour's starting point, but we will make different choices.

“For example, we are looking at giving middle and lower income families a tax cut by introducing a 10p starting rate of tax, paid for by a mansion tax on the wealthiest.

“But George Osborne's priority should be getting strong economic growth this year and next year. More growth now would mean a better situation on the public finances after 2015.”

Tell us what you think – have your say below, or email us directly at [email protected]

Comments

There are no comments. Why not be the first?

Add your comment

related

public sector executive tv

more videos >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been the r more > more last word articles >

public sector focus

View all News

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Bei... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues t... more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need ... more >