Chancellor Says There Are No Need for Tax Rises
George Osborne says he will not need to raise taxes to meet deficit reduction targets after the next election.
Speaking in front of the Treasury Committee, the Chancellor said he would be able to cut borrowing through spending cuts alone. He said original plans to cut the deficit with 80% spending cuts and 20% tax rises were only ever “a guide” and he suggested that Labour might choose to raise taxes, should the party win the election in 2015.
Mr Osborne told the Committee, “I am clear that tax increases are not required to achieve further consolidation. It can be achieved with spending reductions. I’m not sure whether Labour would do big tax increases. I suspect they would, but that is for them to explain.
“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.”
