Which taxes will rise
Which taxes will Mr Blair raise?
Leading Conservatives have issued a fresh warning to the nation that the election of a third term Labour government will carry a high price in higher tax levies.Speaking in advance of Labour's election manifesto launch, Shadow Chancellor Oliver Letwin referred to the confusion caused by Tony Blair's rambling presentation of his party's economic policy, and cautioned against fresh attempts by the Labour high command to unveil a fresh array of spending commitments - without spelling out how they will be paid for.
He said: "We want to deliver a short and simple message about Mr Blair and the Labour Party. This morning, Labour will present their manifesto - but I doubt they will tell you how they are going to pay for it. "The promises made in that manifesto will be based on their plans to borrow, spend and tax.
Because they are planning to spend more and borrow more than we are, they will have to tax more."Mr Letwin argued that while a new Conservative government would increase spending on key priorities like hospitals, schools, police and pensions, taxes would not need to rise. However, he added: Mr Blair's plans, as Labour have repeatedly said, mean spending £12 billion more than we plan in 2007/8 and £35 billion more than we plan in 2011/12. So The question we are asking today is: how would he pay for it?"
The message was reinforced by Shadow Chief Secretary to the Treasury, George Osborne, who highlighted Mr Blair's "form" on tax. He said: "Before the 1997 election, Mr Blair said, 'if there are any tax rates that we have in mind we will be open and honest with people about them … We aren't going into the election and tell lies.'"But straight after the 1997 election, he raised tax - the biggest being his £5bn a year raid on Britain's pension funds."Before the 2001 election, he said that people 'shouldn't' suppose that he would put up national insurance contributions if he won another term.
As soon as he won the election, he put up National Insurance Contributions. After 66 stealth taxes, people know that Mr Blair is not open and honest about which taxes he will raise."Mr Osborne pinpointed the evidence of independent experts, including the IFS, IMF, OECD and the ITEM Club, who have all acknowledged that the Blair government is spending so much that taxes would have to rise in the event of a Labour third term. He told conservatives.com: "
This month, a poll of 26 independent economists has revealed that 90 per cent of them expect taxes to rise if Labour won the election."And he also targeted Chancellor Gordon Brown, whose forecasts for government borrowing in his 2001 pre-election budget turned out to be completely wrong. "He said he would borrow only £12bn over six years - and ended up borrowing £124bn.
He was out by over £100bn. No company would hire someone with this record as their finance director."Mr Osborne said: "Because Mr Blair and his Labour government always runs out of money, he always needs to raise taxes. At this election, the question is not whether Mr Blair would raise tax if he won the election, it is which tax would he raise: will it be: capital gains tax on homes, VAT on food, or National Insurance - Mr Blair's tax of choice?"
He warned: "If he chooses to raise employee National Insurance, it would have to be by 3%...costing a couple, both on average earnings, an extra £1,000 a year between them. That is the hidden price tag on Mr Blair's manifesto."
Leading Conservatives have issued a fresh warning to the nation that the election of a third term Labour government will carry a high price in higher tax levies.Speaking in advance of Labour's election manifesto launch, Shadow Chancellor Oliver Letwin referred to the confusion caused by Tony Blair's rambling presentation of his party's economic policy, and cautioned against fresh attempts by the Labour high command to unveil a fresh array of spending commitments - without spelling out how they will be paid for.
He said: "We want to deliver a short and simple message about Mr Blair and the Labour Party. This morning, Labour will present their manifesto - but I doubt they will tell you how they are going to pay for it. "The promises made in that manifesto will be based on their plans to borrow, spend and tax.
Because they are planning to spend more and borrow more than we are, they will have to tax more."Mr Letwin argued that while a new Conservative government would increase spending on key priorities like hospitals, schools, police and pensions, taxes would not need to rise. However, he added: Mr Blair's plans, as Labour have repeatedly said, mean spending £12 billion more than we plan in 2007/8 and £35 billion more than we plan in 2011/12. So The question we are asking today is: how would he pay for it?"
The message was reinforced by Shadow Chief Secretary to the Treasury, George Osborne, who highlighted Mr Blair's "form" on tax. He said: "Before the 1997 election, Mr Blair said, 'if there are any tax rates that we have in mind we will be open and honest with people about them … We aren't going into the election and tell lies.'"But straight after the 1997 election, he raised tax - the biggest being his £5bn a year raid on Britain's pension funds."Before the 2001 election, he said that people 'shouldn't' suppose that he would put up national insurance contributions if he won another term.
As soon as he won the election, he put up National Insurance Contributions. After 66 stealth taxes, people know that Mr Blair is not open and honest about which taxes he will raise."Mr Osborne pinpointed the evidence of independent experts, including the IFS, IMF, OECD and the ITEM Club, who have all acknowledged that the Blair government is spending so much that taxes would have to rise in the event of a Labour third term. He told conservatives.com: "
This month, a poll of 26 independent economists has revealed that 90 per cent of them expect taxes to rise if Labour won the election."And he also targeted Chancellor Gordon Brown, whose forecasts for government borrowing in his 2001 pre-election budget turned out to be completely wrong. "He said he would borrow only £12bn over six years - and ended up borrowing £124bn.
He was out by over £100bn. No company would hire someone with this record as their finance director."Mr Osborne said: "Because Mr Blair and his Labour government always runs out of money, he always needs to raise taxes. At this election, the question is not whether Mr Blair would raise tax if he won the election, it is which tax would he raise: will it be: capital gains tax on homes, VAT on food, or National Insurance - Mr Blair's tax of choice?"
He warned: "If he chooses to raise employee National Insurance, it would have to be by 3%...costing a couple, both on average earnings, an extra £1,000 a year between them. That is the hidden price tag on Mr Blair's manifesto."
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