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| Version 1 | Version 2 |
|---|---|
| Mandelson: Tories confused on tax | Mandelson: Tories confused on tax |
| (10 minutes later) | |
| Lord Mandelson has said Tory tax plans have been "thrown into confusion" by shadow business secretary Ken Clarke. | Lord Mandelson has said Tory tax plans have been "thrown into confusion" by shadow business secretary Ken Clarke. |
| Mr Clarke told the BBC the Tories' main economic goals would be to cut public debt and restore growth rather than cut inheritance tax on homes under £1m. | Mr Clarke told the BBC the Tories' main economic goals would be to cut public debt and restore growth rather than cut inheritance tax on homes under £1m. |
| Later, a Conservative spokesman said the party was still committed to its manifesto pledge to cut the tax. | Later, a Conservative spokesman said the party was still committed to its manifesto pledge to cut the tax. |
| The Tories' had pledged to cut inheritance tax in 2007. | The Tories' had pledged to cut inheritance tax in 2007. |
| 'Tremendous mess' | 'Tremendous mess' |
| Mr Clarke told the BBC's Politics Show the priority was to stabilise public finances and to do so in a way which hopefully did not necessitate tax rises for most people. | Mr Clarke told the BBC's Politics Show the priority was to stabilise public finances and to do so in a way which hopefully did not necessitate tax rises for most people. |
| Tough choices would be required because of the "tremendous mess" the Tories would inherit if elected, he stressed, with debt levels "of a kind never previously seen". | Tough choices would be required because of the "tremendous mess" the Tories would inherit if elected, he stressed, with debt levels "of a kind never previously seen". |
| On inheritance tax, he said raising current thresholds was an "aspiration" which the party retained and hoped to get around to "sooner or later". | On inheritance tax, he said raising current thresholds was an "aspiration" which the party retained and hoped to get around to "sooner or later". |
| Recent indications that the Tories will not reverse Labour's planned tax rises for the rich have already caused internal ructions. | Recent indications that the Tories will not reverse Labour's planned tax rises for the rich have already caused internal ructions. |
| Ken Clarke: "The highest priority is tackling debt" | Ken Clarke: "The highest priority is tackling debt" |
| Business Secretary Lord Mandelson said: "Ken Clarke's comments have thrown [shadow chancellor] George Osborne's tax plans into confusion. | Business Secretary Lord Mandelson said: "Ken Clarke's comments have thrown [shadow chancellor] George Osborne's tax plans into confusion. |
| "The thing about Ken is that he just cannot help but say what he thinks. | "The thing about Ken is that he just cannot help but say what he thinks. |
| "On economic and taxation policy, as on so many issues, his views are nearer to the government's than to the Cameron-Osborne Tory Party." | "On economic and taxation policy, as on so many issues, his views are nearer to the government's than to the Cameron-Osborne Tory Party." |
| Mr Clarke released a statement denying there was a split over tax policy. | Mr Clarke released a statement denying there was a split over tax policy. |
| "So far as I am concerned, we are fully committed to raising the threshold for inheritance tax in the first parliament of a Conservative government, as George Osborne has promised. | "So far as I am concerned, we are fully committed to raising the threshold for inheritance tax in the first parliament of a Conservative government, as George Osborne has promised. |
| "This measure will appear in the manifesto and I support it. We also all agree that George Osborne cannot write his first Budget until we have seen what we have inherited. I cannot see any significant difference between what I have said and what my colleagues have said." | "This measure will appear in the manifesto and I support it. We also all agree that George Osborne cannot write his first Budget until we have seen what we have inherited. I cannot see any significant difference between what I have said and what my colleagues have said." |
| Increasing income tax for top earners to 45% from 2011 would be "difficult to avoid", Mr Osborne has said - a stance backed up by Mr Clarke and shadow foreign secretary William Hague. | Increasing income tax for top earners to 45% from 2011 would be "difficult to avoid", Mr Osborne has said - a stance backed up by Mr Clarke and shadow foreign secretary William Hague. |
| But the Conservative Mayor of London Boris Johnson has said the move would stifle British enterprise, a view Mr Clarke said was "just wrong". | But the Conservative Mayor of London Boris Johnson has said the move would stifle British enterprise, a view Mr Clarke said was "just wrong". |
| In recent weeks, senior Conservatives have stressed that the party will face extremely tough choices if it wins the next election given the state of public finances. | In recent weeks, senior Conservatives have stressed that the party will face extremely tough choices if it wins the next election given the state of public finances. |
| The shadow chancellor said he has never ruled out tax rises | The shadow chancellor said he has never ruled out tax rises |
| The Conservatives insist that cutting the overall burden of tax for families remains a long-term objective and have pledged to freeze council tax bills for two years among other proposals. | The Conservatives insist that cutting the overall burden of tax for families remains a long-term objective and have pledged to freeze council tax bills for two years among other proposals. |
| But they have declined to rule out tax rises after the next election. | But they have declined to rule out tax rises after the next election. |
| Later on Sunday, a Conservative Party spokesman said: "People should be clear that the promise we made on inheritance tax is a promise we will keep. It will be in the manifesto. | Later on Sunday, a Conservative Party spokesman said: "People should be clear that the promise we made on inheritance tax is a promise we will keep. It will be in the manifesto. |
| "But for years George Osborne has said he will not write budgets - including the 2010 one - in advance. | "But for years George Osborne has said he will not write budgets - including the 2010 one - in advance. |
| "We are only able to help people who have saved to pass on something on to their children because we have identified those who will pay for it - non-domiciles." | "We are only able to help people who have saved to pass on something on to their children because we have identified those who will pay for it - non-domiciles." |
| BBC political correspondent Carole Walker said the party cannot afford indiscipline on tax. | |
| Our correspondent said: "Ken Clarke's critics will say all this proves they were right to question the wisdom of bringing such an outspoken free-thinker back into the shadow cabinet." |