Howard promises £4 billion in tax cuts
Conservative leader Michael Howard has said that if the Tories win the next general election, they will cut taxes by £4 billion.
Publishing the results of the James Review, Mr Howard said that he believed £35 billion could be saved a year in cutting wasteful government expenditure.
These savings would mean that £23 billion would be ploughed back into frontline services, £8 billion held in reserve, and £4 billion used to finance tax cuts.
He claimed that this meant that the Conservatives could meet or exceed Labour’s spending pledges on key public services.
But, opposition parties have already mocked the savings proposed by the James Report, claiming they don’t add up and would lead to service cuts.
Speaking this afternoon at the Institute of Directors, Mr Howard attacked the Government for taking Britain “in the wrong direction”.
He claimed there had been a shift in the balance of society “in favour of government at the expense of people” and he labelled Government “wasteful” for employing as many civil servants as there are people in Sheffield.
Suggesting that increasing waste and rising public spending are building up problems for the future of the British economy, Michael Howard said his government would rein in spending through cutting waste. But he also promised that spending on teachers and nurses would continue to rise were he to be the next Prime Minister.
Claiming a Conservative government would stand up for the “forgotten majority”, the Opposition Leader said they would represent the values of “‘trusting free enterprise; promoting individual responsibility; cherishing a sense of nationhood; rewarding hard work; admiring excellence; encouraging ambition’.
At the next election, Mr Howard said there would be a “clear choice” – “more waste and higher taxes under Tony Blair or value for money and lower taxes under the Conservatives.”
But, Liberal Democrat economics spokesman Dr Vince Cable accused the Tories on engaging in “fantasy economics”.
He branded the proposals “dishonest and opportunistic”, saying: “Oliver Letwin has failed to acknowledge that tough choices need to be made in spending. The idea that they can increase spending on health, education, policing, international development and defence, cut taxes and correct any budget deficit by removing waste in the public sector is laughably implausible.
Dr Cable added: “The Conservatives cannot afford these plans without introducing serious cuts to our public services.”
