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Cameron faces policy tax demand Cameron faces policy tax demand
(about 2 hours later)
Tory leader David Cameron is facing new pleas to commit the Conservative party to a policy of tax cuts.Tory leader David Cameron is facing new pleas to commit the Conservative party to a policy of tax cuts.
The Thatcherite No Turning Back Group is to publish a pamphlet setting out the case for the move.The Thatcherite No Turning Back Group is to publish a pamphlet setting out the case for the move.
The call by the group, chaired by the former minister John Redwood, focuses on longer term aspirations rather than setting out specific policies.The call by the group, chaired by the former minister John Redwood, focuses on longer term aspirations rather than setting out specific policies.
It comes as Mr Cameron rebuffed tax cut demands, saying economic stability had to be the party's first priority.It comes as Mr Cameron rebuffed tax cut demands, saying economic stability had to be the party's first priority.
Mr Redwood denied he was at odds with his leader and Mr Cameron would accept the longer term case he was proposing.Mr Redwood denied he was at odds with his leader and Mr Cameron would accept the longer term case he was proposing.
Mr Cameron told the first day of the annual conference in Bournemouth: "While people wanted, more than anything, stability and low mortgage rates, the first thing we talked about was tax cuts."Mr Cameron told the first day of the annual conference in Bournemouth: "While people wanted, more than anything, stability and low mortgage rates, the first thing we talked about was tax cuts."
Economic stabilityEconomic stability
And he told BBC's Sunday AM programme: "Those people who say they want tax cuts and want them now - they can't have them."And he told BBC's Sunday AM programme: "Those people who say they want tax cuts and want them now - they can't have them."
He has said that economic stability must come first and has only gone so far as to pledge to share the proceeds of growth between public spending and tax cuts.He has said that economic stability must come first and has only gone so far as to pledge to share the proceeds of growth between public spending and tax cuts.
Mr Redwood said he backs Mr Cameron's call for any proceeds of growth to be shared between spending and tax cuts. Mr Redwood said he backed Mr Cameron's call for any proceeds of growth to be shared between spending and tax cuts.
He says he sees the pamphlet as part of the continuing development of policy. He said he saw the pamphlet as part of the continuing development of policy.
He told the BBC's Today programme reports he was at odds with his leader were "nonsense".
"We entirely agree with him," he said.
He said they agreed they should not take risks with economic stability and believed in "sharing the proceeds of growth".
"All of the proceeds of growth have been taken by the state and wasted," he said.
Should the current tax levels remain under a Conservative government, it was likely there would be some economic growth as there had been under Labour "but I am also going to argue today that if you are able to reduce tax rates you get faster economic growth".
He pointed to the Republic of Ireland which had seen growth "three times" more than the UK over the same period. This, he said, was because of lower tax levels.
But the proposal may add fuel to the row and could overshadow what Mr Cameron hopes will be a positive, optimistic and forward-looking rally.But the proposal may add fuel to the row and could overshadow what Mr Cameron hopes will be a positive, optimistic and forward-looking rally.
Tax reform commissionTax reform commission
The debate is also likely to be intensified when the party's tax reform commission reports back later this month.The debate is also likely to be intensified when the party's tax reform commission reports back later this month.
That group, created by shadow chancellor George Osborne and headed by Lord Forsyth, is also expected to call for tax cuts of up to £19.5bn, including a cut in the basic rate of tax.That group, created by shadow chancellor George Osborne and headed by Lord Forsyth, is also expected to call for tax cuts of up to £19.5bn, including a cut in the basic rate of tax.
Mr Osborne has restated his support for Mr Cameron's line.Mr Osborne has restated his support for Mr Cameron's line.
He declared at a conference fringe meeting that, while he believed in lower taxes, his first priority would be to guarantee economic stability, keep interest rates and inflation low.He declared at a conference fringe meeting that, while he believed in lower taxes, his first priority would be to guarantee economic stability, keep interest rates and inflation low.
He said: "If it was a choice between economic stability and tax cuts, I will choose economic stability."He said: "If it was a choice between economic stability and tax cuts, I will choose economic stability."