Osborne 'would reverse' Labour tax increase

29/12/2008

Shadow chancellor George Osborne has indicated that a future Conservative government would not put up National Insurance.

The Labour government is currently planning to increase the tax by 0.5 per cent from 2011, in order to pay for its current economic rescue plans.

However, in an interview with the Sunday Times Mr Osborne suggested that he would "reverse" this increase.

"It is a tax on jobs at a time of high unemployment," he commented. "It is a tax on incomes at a time when people will be under severe strain."

The shadow chancellor also said that some income taxes and taxes for the over-65s would also be reduced.

Mr Osborne's comments were strongly criticised by treasury minister Angela Eagle, who said that he had offered no credible explanation for how he would fund the cuts.

Reducing taxes generally reduces the amount of money the government has to spend on public works.

"[He] is happy to try to grab headlines with vague talk about tax cuts but as usual he can't say anything about how he would pay for them," Ms Eagle said.

Tags; Income Worries and Debt, Young Family Finances, Retirement Money Problems, Recent Graduate Debt,

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