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UK: Cutting taxes is a 'moral duty', says David Cameron

30 October 2014   (0 Comments)
Posted by: Author: Steven Swinford
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Author: Steven Swinford (The Telegraph)

Cutting taxes so voters can spend more money on their families is a "moral duty" and will be at the heart of Conservative Party's manifesto, David Cameron has suggested.

Mr Cameron said that the an average worker will pay £3,800 less income tax by 2020 under a future Conservative government because his party is "mindful of who is picking up the bill".

He said that "nowhere is the contrast more stark" between the Tories and Labour than on taxation, as he criticised Ed Miliband for previously describing tax cuts as the equivalent of the "government writing people cheques".

Earlier this year Mr Cameron used his conference speech to pledge to increase the personal allowance and take millions or ordinary workers out of the 40p rate.

The Conservatives are widely expected to announce further tax cuts in their manifesto, including raising the inheritance tax threshold.

In an article for The Times, Mr Cameron said: "No one should doubt my position: with every spending commitment we must be mindful of who picks up the bill.

"It’s easy for Governments to trumpet what they spend money on – and claim a moral victory for it – but on the other side of the coin are those who work hard, many on low incomes, who would desperately like to spend more money on their family.

"The Government has a moral duty to think of these people in any decisions made on tax and spending.

"It is morally right that the rich pay their fair share of tax and right that those who are able contribute to our public services and safety nets.

"But what is morally wrong is [a] government spending money like it grows on trees. Every single pound of public money is private earning."

Mr Cameron said that the Conservative's pledge to increase the personal allowance to £12,500 by 2020 will see most low earners pay £3,800 less in tax than they would have done under plans inherited from Labour.

He argued that "people sometimes say parties are all the same, but the difference between us and Labour couldn't be clearer and nowhere is the contrast more stark than on taxation".

The calculation is based on hypothetical Labour plans which assume the party would not have matched the coalition’s increase in personal allowance and instead it would have risen by RPI inflation, meaning income-tax personal allowance would be about £7,600 in 2015.

Speaking at the Conservative Party conference earlier this year, Mr Cameron said: ""I am not a complicated man, I believe in some simple things. Families come first, they are the way you make a nation strong from inside and out. If you work hard, we will cut your taxes, but only if we keep on cutting the deficit, so we can afford to do that.

"With the Conservatives, if you work hard and do the right thing we say you should keep more of your own money to spend as you choose.”

This article first appeared on telegraph.co.uk.


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