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Osborne unveils pay and tax plans Osborne unveils pay and tax plans
(10 minutes later)
Shadow chancellor George Osborne has unveiled proposals to tackle Britain's debts - including a public sector pay freeze in 2011.Shadow chancellor George Osborne has unveiled proposals to tackle Britain's debts - including a public sector pay freeze in 2011.
He told the Conservative conference in Manchester that only frontline military and people on less than £18,000 a year would still get rises.He told the Conservative conference in Manchester that only frontline military and people on less than £18,000 a year would still get rises.
He said the freeze would help protect jobs and repeatedly said "we're all in this together".He said the freeze would help protect jobs and repeatedly said "we're all in this together".
And he warned bankers he may tax their bonuses if they were deemed excessive.And he warned bankers he may tax their bonuses if they were deemed excessive.
Pension capPension cap
Mr Osborne said he wanted to be straight with voters about the scale of cuts needed and repeatedly said that the better-off must take their share of the pain.Mr Osborne said he wanted to be straight with voters about the scale of cuts needed and repeatedly said that the better-off must take their share of the pain.
OSBORNE'S PROPOSALS Public sector pay freeze in 2011 - except frontline military or people on less than £18,000Keep 50p top tax rate for nowEnd Child Trust Funds for all but the poorest familiesNo tax credits for families earning over £50,000Threat of tax on bank bonusesCrackdown on Whitehall salaries - anyone wanting to pay more than the PM needs Treasury approvalRestore pensions and earnings linkOSBORNE'S PROPOSALS Public sector pay freeze in 2011 - except frontline military or people on less than £18,000Keep 50p top tax rate for nowEnd Child Trust Funds for all but the poorest familiesNo tax credits for families earning over £50,000Threat of tax on bank bonusesCrackdown on Whitehall salaries - anyone wanting to pay more than the PM needs Treasury approvalRestore pensions and earnings link
"I don't believe in balancing the budget on the backs of the poorest," he told Tory party members."I don't believe in balancing the budget on the backs of the poorest," he told Tory party members.
His proposed public sector pay freeze goes further than the one announced by Labour on Monday, which will be restricted to GPs, judges and other high earners.His proposed public sector pay freeze goes further than the one announced by Labour on Monday, which will be restricted to GPs, judges and other high earners.
Mr Osborne said the measures contained in his speech would, by the end of the next Parliament, be saving £7bn a year in government spending.Mr Osborne said the measures contained in his speech would, by the end of the next Parliament, be saving £7bn a year in government spending.
He said he could not think of abolishing Labour's new 50% tax rate on the rich "while at the same time I am asking many of our public sector workers to accept a pay freeze to protect their jobs".He said he could not think of abolishing Labour's new 50% tax rate on the rich "while at the same time I am asking many of our public sector workers to accept a pay freeze to protect their jobs".
In a series of measures likely to form the backbone of the Conservative election manifesto, Mr Osborne proposed a freeze on the pay of government ministers and curbs on "excessive salaries at the top of Whitehall".In a series of measures likely to form the backbone of the Conservative election manifesto, Mr Osborne proposed a freeze on the pay of government ministers and curbs on "excessive salaries at the top of Whitehall".
Any new public employee with a salary greater than the level of the prime minister would need special permission from the Treasury.Any new public employee with a salary greater than the level of the prime minister would need special permission from the Treasury.
And he said the time had come to "find ways to impose a £50,000 annual cap on the size of public sector pension payouts".And he said the time had come to "find ways to impose a £50,000 annual cap on the size of public sector pension payouts".
TORY CONFERENCE TWEETS TORY CONFERENCE TWEETS
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To clarify-public workers over 18k pay freeze,cuts to child trust fund + tax credits,and later retirement- members delighted in hall #cpc09 About 1 hour ago Osborne making big pitch on being honest with the public 'we are all in this together' #cpc09 About 2 hours ago cuts to child trust funds,and tax credits-osborne's audience clapping those ideas #cpc09 About 2 hours ago osborne-we respect public sector workers but all on less than 18 grand to have pay frozen apart from military #cpc09 About 2 hours ago big cheer for getting rid of regional assemblies-tories would cut cost of whitehall by a third #cpc09 About 2 hours ago What is this? Send us your comments best selling item in the tory shop?baby clothes with tory logo-grooming the next generation already...#cpc09 9 minutes ago To clarify-public workers over 18k pay freeze,cuts to child trust fund + tax credits,and later retirement- members delighted in hall #cpc09 About 1 hour ago Osborne making big pitch on being honest with the public 'we are all in this together' #cpc09 About 2 hours ago cuts to child trust funds,and tax credits-osborne's audience clapping those ideas #cpc09 About 2 hours ago osborne-we respect public sector workers but all on less than 18 grand to have pay frozen apart from military #cpc09 About 2 hours ago What is this? Send us your comments
He also vowed to cut the cost of Whitehall - proposing to slash departmental budgets by a third during the lifetime of Parliament, a move he said would save £3bn.He also vowed to cut the cost of Whitehall - proposing to slash departmental budgets by a third during the lifetime of Parliament, a move he said would save £3bn.
Tax credits for families earning more than £50,000 a year would be ended and the Child Trust Fund would be limited to the poorest third in society.Tax credits for families earning more than £50,000 a year would be ended and the Child Trust Fund would be limited to the poorest third in society.
But child benefit will be preserved as a universal benefit and the party would not axe the winter fuel payment or free TV licences for pensioners, he said.But child benefit will be preserved as a universal benefit and the party would not axe the winter fuel payment or free TV licences for pensioners, he said.
Mr Osborne also confirmed plans revealed on Monday to bring forward a rise in the age at which people can claim a state pension.Mr Osborne also confirmed plans revealed on Monday to bring forward a rise in the age at which people can claim a state pension.
Explaining the need for the tough package of measures, he said: "These are the honest choices in the world in which we live and we have made them today.Explaining the need for the tough package of measures, he said: "These are the honest choices in the world in which we live and we have made them today.
"Anyone who tells you these choices can be avoided in not telling you the truth. We are all in this together.""Anyone who tells you these choices can be avoided in not telling you the truth. We are all in this together."
Byrne attackByrne attack
The government has come under fire from public sector unions for its plans to freeze the pay of senior civil servants such as judges and GPs.The government has come under fire from public sector unions for its plans to freeze the pay of senior civil servants such as judges and GPs.
Chancellor Alistair Darling has written to salary review bodies calling on them to freeze the pay of 40,000 senior public servants in 2010/11.Chancellor Alistair Darling has written to salary review bodies calling on them to freeze the pay of 40,000 senior public servants in 2010/11.
He also recommended that about 700,000 middle-ranking public servants, including doctors, dentists and prison officers, get a rise of between 0 and 1%.He also recommended that about 700,000 middle-ranking public servants, including doctors, dentists and prison officers, get a rise of between 0 and 1%.
Mr Osborne attacked Mr Darling for "sneaking out" the announcement during the Tory conference saying "he didn't have the guts to announce it to the Labour Party conference".Mr Osborne attacked Mr Darling for "sneaking out" the announcement during the Tory conference saying "he didn't have the guts to announce it to the Labour Party conference".
But Liam Byrne, chief secretary to the Treasury, said: "George Osborne appears intent on talking Britain down. We were told his speech would tell us 'everything' we needed to know about how the Tories would get the deficit down. But he lost his nerve.But Liam Byrne, chief secretary to the Treasury, said: "George Osborne appears intent on talking Britain down. We were told his speech would tell us 'everything' we needed to know about how the Tories would get the deficit down. But he lost his nerve.
"How can George Osborne say 'we're in this together' and then recommit his party to a tax giveaway to the wealthiest 3,000 estates?""How can George Osborne say 'we're in this together' and then recommit his party to a tax giveaway to the wealthiest 3,000 estates?"