10/04/2003

Opposition parties slam Brown over taxation

Opposition parties have come out strongly against Gordon Brown's tax proposals - with the Tories claiming that there would be "more pain ahead" for tax-payers and the Lib Dems slamming the chancellor over what they view is a heightened tax burden for the poorest workers.

In the Commons yesterday, the Conservative leader criticised the Chancellor's proposals saying it contained many backdoor taxes which could leave the average family £568 out of pocket in the year ahead.

Mr Duncan Smith told MPs: "The Chancellor's budget message is clear - higher taxes, that's pain today, and higher borrowing, that's more pain tomorrow. It's the same old story - more taxes, more spend, more waste."

Under Labour, he said, new tax levies had been placed on jobs, homes, homeowners, mortgages and marriages, petrol and pensions.

"Fifty three tax rises later, this week when people receive their pay packets they will find their take-home pay has fallen for the first time in 20 years," he said.

"Now they know what Mr Brown really stands for - promises, promises, promises. Every year you make them and every year you break them," he said.

Mr Duncan Smith said that improvements in front line public services had not been implemented – claiming that one million people remained on waiting lists, a crime was committed every five seconds, and thousands of children still leave school without GCSEs.

Warning that the rise in National Insurance – which came in last Sunday – will cost firms another £8 billion, he said: "The Chancellor has been so hard on business that since 1997 he has taken an extra £47 billion from them in tax."

Liberal Democrats leader Charles Kennedy said the Chancellor had presided over the "biggest buck-passing budget in history".

Mr Kennedy said: "This budget over-taxes working families and pensioners whilst protecting the super-rich, and stifles business again in red tape and tax complications.

"The Chancellor’s legacy is that the poorest 20% are paying more of their income in tax than the richest 20%. In particular this year’s unaffordable Council Tax rises are a result of the Chancellor’s buck passing, hoping Councillors will get the blame."

(GMcG)

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