Letwin vows to hammer Blair on taxation
Shadow Chancellor Oliver Letwin today promised to make tax a central issue in the upcoming election campaign following a think-tank report that claims Labour will have to raise taxes if they retain power.
A report from the Institute for Fiscal Studies published today says Chancellor Gordon Brown’s economic forecasts are too optimistic and if re-elected he would need to raise taxes by £11 billion to “put the public finances back on a path as strong as the Treasury aimed for in the 2004 Budget”.
Speaking at a press conference, Mr Letwin said: “For many months we have been saying that Mr Blair is spending and borrowing too much, and that taxes would be increased if Labour were re-elected.
“Today, the Institute for Fiscal Studies, the most respected commentator on fiscal affairs in Britain, have offered their verdict. The IFS says that under Labour’s plans, taxes would have to rise substantially. That is Labour’s next tax hike.”
Mr Letwin added: “There is [a] simple question that we will repeat and repeat and repeat between now and the election: ‘Mr Blair, which taxes are you going to raise?'”
Speaking at the same press conference, Conservative leader Mr Howard accused Labour of saying “whatever is necessary, and, once the votes are counted, put up taxes.”
Previously, Tony Blair has answered such questions by saying he has faith in the Treasury’s forecasts, which he claims have proved consistently more reliable than other commentators. And, the Treasury has insisted that all of its spending plans are fully costed.
Responding, the Liberal Democrats’ economic spokesman, Dr Vince Cable, said it was further proof that an independent audit system of the Government’s finances was needed.
Dr Cable, said: “We cannot have a situation where commentators raise questions about the Chancellor’s figures and then the Government deny any problems.
“The Chancellor must restore credibility in fiscal policy by opening it up to genuine independent evaluation by a body accountable to Parliament, like the NAO.”
