Ministers admit that tax rises will follow tax cuts
Tax rises are set to follow next week’s tax cuts, ministers admitted yesterday as Gordon Brown raised the spectre of deflation in Britain for the first time. David Cameron predicted a tax-raising “bombshell” after Lord Mandelson, the Business Secretary, spoke of the need for “structural adjustments later on” and Mr Brown himself accepted that the Pre-Budget Report (PBR) stimulus would be “temporary”. Their remarks reflected the strong Treasury view that next week’s tax cut and spending package from the Chancellor, Alistair Darling, must be accompanied by evidence that he intends to get soaring borrowing back on course over the medium term. That should mean tax rises, spending cuts or both. As the Prime Minister, reporting back to MPs from the Washington summit, predicted that governments across the world would soon be cutting taxes or raising spending, Mr Cameron told him to come clean and admit that his higher borrowing meant “higher taxes tomorrow”. snip http://www.timesonline.co.uk/tol/news/politics/article5176571.ece
Tax rises are set to follow next week’s tax cuts, ministers admitted yesterday as Gordon Brown raised the spectre of deflation in Britain for the first time. David Cameron predicted a tax-raising “bombshell” after Lord Mandelson, the Business Secretary, spoke of the need for “structural adjustments later on” and Mr Brown himself accepted that the Pre-Budget Report (PBR) stimulus would be “temporary”. Their remarks reflected the strong Treasury view that next week’s tax cut and spending package from the Chancellor, Alistair Darling, must be accompanied by evidence that he intends to get soaring borrowing back on course over the medium term. That should mean tax rises, spending cuts or both. As the Prime Minister, reporting back to MPs from the Washington summit, predicted that governments across the world would soon be cutting taxes or raising spending, Mr Cameron told him to come clean and admit that his higher borrowing meant “higher taxes tomorrow”. snip http://www.timesonline.co.uk/tol/news/politics/article5176571.ece