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Tories 'to be responsible on tax' Tories 'to be responsible on tax'
(10 minutes later)
Shadow chancellor George Osborne has insisted that the Conservatives will put maintaining economic stability ahead of a £21bn package of tax cuts.Shadow chancellor George Osborne has insisted that the Conservatives will put maintaining economic stability ahead of a £21bn package of tax cuts.
The party's Tax Reform Commission has outlined the package of cuts as part of a simpler, flatter tax system.The party's Tax Reform Commission has outlined the package of cuts as part of a simpler, flatter tax system.
Mr Osborne said some recommendations may be adopted - but not if they put the economy and low mortgages at risk.Mr Osborne said some recommendations may be adopted - but not if they put the economy and low mortgages at risk.
The Lib Dems say the Tories are in a muddle, while Labour say tax cuts would be financed by cuts in public spending.The Lib Dems say the Tories are in a muddle, while Labour say tax cuts would be financed by cuts in public spending.
These are tax cuts for the few Ed BallsEconomic Secretary to Treasury class="">Back to the old tax row A new approach? These are tax cuts for the few Ed BallsEconomic Secretary to Treasury class="">Analysis: Back to the old row A new approach?
The review was chaired by Conservative peer Lord Forsyth, who said the proposals, which are not binding on the party, were realistic and achievable over the course of a Parliament.The review was chaired by Conservative peer Lord Forsyth, who said the proposals, which are not binding on the party, were realistic and achievable over the course of a Parliament.
Recommendations in the report, due to be officially published on Thursday, include reducing the basic income tax rate from 22% to 20%.Recommendations in the report, due to be officially published on Thursday, include reducing the basic income tax rate from 22% to 20%.
It also recommends scrapping the 10p starting tax rate and raising tax-free earnings from £5,035 to £7,185 - which it says removes 2.5 million people from the tax system.It also recommends scrapping the 10p starting tax rate and raising tax-free earnings from £5,035 to £7,185 - which it says removes 2.5 million people from the tax system.
'Menu of options''Menu of options'
The report also backs abolishing stamp duty on shares, cutting business taxes and replacing inheritance tax with a "capital gains tax on death" - which would not be levied on family homes.The report also backs abolishing stamp duty on shares, cutting business taxes and replacing inheritance tax with a "capital gains tax on death" - which would not be levied on family homes.
The main corporation tax rate would also be lowered.The main corporation tax rate would also be lowered.
The commission was set up to advise the Conservatives on tax policy, should they win power, but its recommendations are "far from official Tory policy", said BBC economics editor Evan Davis.The commission was set up to advise the Conservatives on tax policy, should they win power, but its recommendations are "far from official Tory policy", said BBC economics editor Evan Davis.
He said the report had not mentioned "green taxes", favoured by Tory leader David Cameron, who has also said he will not promise tax cuts unless they can be paid for.He said the report had not mentioned "green taxes", favoured by Tory leader David Cameron, who has also said he will not promise tax cuts unless they can be paid for.
Shadow Chancellor George Osborne told BBC Radio 4's Today on Thursday that no "upfront, unfunded tax reductions" would be promised before the next general election.Shadow Chancellor George Osborne told BBC Radio 4's Today on Thursday that no "upfront, unfunded tax reductions" would be promised before the next general election.
HAVE YOUR SAY People are finding it harder to live as taxes go up. Of course it's time for tax cuts Wayne Morris, Port Talbot Send us your commentsHAVE YOUR SAY People are finding it harder to live as taxes go up. Of course it's time for tax cuts Wayne Morris, Port Talbot Send us your comments
"The commission has given us a menu of options that merit serious consideration."The commission has given us a menu of options that merit serious consideration.
"Some we will accept, some we will modify, and others we may reject," he said."Some we will accept, some we will modify, and others we may reject," he said.
He said green taxes could pay for reductions in family taxes, and business taxes would be simplified to pay for a drop in business tax rates.He said green taxes could pay for reductions in family taxes, and business taxes would be simplified to pay for a drop in business tax rates.
He said the point he would "hammer and hammer" before the next election was the Conservatives would put economic stability first and that they could be trusted not to put low mortgage rates and inflation at risk.He said the point he would "hammer and hammer" before the next election was the Conservatives would put economic stability first and that they could be trusted not to put low mortgage rates and inflation at risk.
'A muddle''A muddle'
However, Economic Secretary to the Treasury Ed Balls said the "huge" tax cuts would not help ordinary families and would leave a hole in public finance.However, Economic Secretary to the Treasury Ed Balls said the "huge" tax cuts would not help ordinary families and would leave a hole in public finance.
"The problem is there is no indication here at all as to how it will be paid for," he said. "David Cameron has denied he would cut public spending."The problem is there is no indication here at all as to how it will be paid for," he said. "David Cameron has denied he would cut public spending.
"The hole in the finances that this would create is dangerous for the economy.""The hole in the finances that this would create is dangerous for the economy."
He added: "These are tax cuts for the few. This is the same old Conservative party. It's a party that will take risks with the economy."He added: "These are tax cuts for the few. This is the same old Conservative party. It's a party that will take risks with the economy."
Lib Dem leader Sir Menzies Campbell also criticised the plans.Lib Dem leader Sir Menzies Campbell also criticised the plans.
"Tory tax plans are in a muddle," he said."Tory tax plans are in a muddle," he said.
"You can't produce plans for £21bn worth of tax cuts without saying how they would be paid for.""You can't produce plans for £21bn worth of tax cuts without saying how they would be paid for."