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Cameron facing tax cuts demands 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 publishing 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.
Shadow chancellor George Osborne said he could not pledge tax cuts - adding it was "conceivable" taxes could rise.Shadow chancellor George Osborne said he could not pledge tax cuts - adding it was "conceivable" taxes could rise.
It is conceivable, not least because taxes went up under Margaret Thatcher's first government, but that's certainly not our intention George OsborneShadow chancellor
Mr Osborne said his top priority had to be keeping interest rates and inflation low.Mr Osborne said his top priority had to be keeping interest rates and inflation low.
'No dispute'
Mr Redwood denied he was at odds with his leader and said Mr Cameron would accept the longer term case he was proposing.Mr Redwood denied he was at odds with his leader and said Mr Cameron would accept the longer term case he was proposing.
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 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 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.
Irish example
The former minister 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, explaining that he too believed no risks should be taken with economy stability."We entirely agree with him," he said, explaining that he too believed no risks should be taken with economy stability.
"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.
Irish example
Mr Redwood said it was likely there would be some economic growth under a Conservative government if current tax levels remained the same.Mr Redwood said it was likely there would be some economic growth under a Conservative government if current tax levels remained the same.
"But I am also going to argue today that if you are able to reduce tax rates you get faster economic growth," he said."But I am also going to argue today that if you are able to reduce tax rates you get faster economic growth," he said.
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.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.
But the proposal may add to claims that there are divisions within Tory ranks over the tax policy.But the proposal may add to claims that there are divisions within Tory ranks over the tax policy.
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."
'Not pushed around''Not pushed around'
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.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.
"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."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.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."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.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.
HAVE YOUR SAY Cameron needs to show he has solid policies to match his well-honed instinct for PR Lesley Robson, UK Send us your views But he argued that Tory policies would set a different direction from that advocated by Labour Chancellor Gordon Brown.HAVE YOUR SAY Cameron needs to show he has solid policies to match his well-honed instinct for PR Lesley Robson, UK Send us your views 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.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.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.