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Cameron faces policy tax demand Cameron facing tax cuts demands
(about 1 hour 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 publishing 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. Shadow chancellor George Osborne said he could not pledge tax cuts - adding it was "conceivable" taxes could rise.
Mr Redwood denied he was at odds with his leader and Mr Cameron would accept the longer term case he was proposing. Mr Osborne said his top priority had to be keeping interest rates and inflation low.
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." 'No dispute'
Economic stability Mr Redwood denied he was at odds with his leader and said Mr Cameron would accept the longer term case he was proposing.
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 said he backed Mr Cameron's call for any proceeds of economic growth to be shared between spending on public services 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 backed Mr Cameron's call for any proceeds of growth to be shared between spending and tax cuts.
He said he saw 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". The former minister told the BBC's Today programme reports he was at odds with his leader were "nonsense".
"We entirely agree with him," he said. "We entirely agree with him," he said, explaining that he too believed no risks should be taken with economy stability.
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."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". Irish example
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. Mr Redwood said it was likely there would be some economic growth under a Conservative government if current tax levels remained the same.
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 I am also going to argue today that if you are able to reduce tax rates you get faster economic growth," he said.
Tax reform commission Mr Redwood 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.
The debate is also likely to be intensified when the party's tax reform commission reports back later this month. But the proposal may add to claims that there are divisions within Tory ranks over the tax policy.
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 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 Osborne has restated his support for Mr Cameron's line. 'Not pushed around'
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. Mr Osborne echoed that view, saying it was unlikely he would be able to make up front promises of tax cuts ahead of the next election.
He said: "If it was a choice between economic stability and tax cuts, I will choose economic stability." "There are some people in this party and outside this party who are trying to push us around on this, we will not be pushed around," he told BBC Radio 4's Today programme.
The shadow chancellor said he wanted to move towards lower taxes but he had to be responsible.
Asked if taxes could rise under a Tory government, he replied: "It is conceivable, not least because taxes went up under Margaret Thatcher's first government but that's certainly not our intention."
Mr Osborne said he wanted to reduce the share of national income used for public spending - but refused to put a figure on what he would like the share to be.
But he argued that Tory policies would set a different direction from that advocated by Labour Chancellor Gordon Brown.
The tax debate is likely to be intensified when the party's tax reform commission reports back later this month.
That group, headed by former minister Lord Forsyth, is also expected to call for tax cuts of up to £19.5bn, including a cut in the basic rate of tax.