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January 2005 Click to go back to the previous page

-ROBERT’S COMMENTS-
An insight into the week’s national news

Value for Money & Lower Taxes

At 3.15 pm today, the Conservatives unveiled their Value for Money Action Plan. This plan shows how we can get value for money by taking tough decisions. We will spend on what matters to the majority of people by cutting back on the rest.

Our plan means we can:

  • Stop Mr Blair’s next round of stealth tax rises.
  • Give taxpayers value for money.
  • Cut taxes.

In 2007-8, we will be spending £12 billion less than Labour. Of this £12 billion, we will spend £8 billion on reducing Labour’s excessive borrowing so we can avoid the tax rises that would be inevitable under another Labour Government. The remaining £4 billion will be used to cut taxes.

The choice at the next election is clear: more waste and higher taxes under Labour, or value for money and lower taxes under the Conservatives.

Why Labour are All Talk
Tony Blair said he had ‘no plans to increase tax at all’, but then he increased them 66 times.

Now, nearly all independent experts, including the OECD, IMF, IFS, ITEM Club, NIESR and CEBR say that Mr Blair is spending, wasting and borrowing so much that he would have to put up taxes again if he wins the next election.

Estimates of the size of the black hole vary. Some commentators think it will be about £10 billion, others think it will be larger.

Unlike the Conservatives, Mr Blair has no plans to deal with the black hole, so he would have to put up taxes again. The only question is which? He could:

  • Charge Capital Gains Tax on people’s homes;
  • Put VAT on food; or
  • Increase National Insurance by 3 per cent.

The pressure is now on Mr Blair to say which taxes would rise.

Liberal Democrats
The Liberal Democrats confirmed today that they would put up tax. They have more than 100 spending commitments which they intend to fund with more than 40 tax rises.

These include a local income tax, which would cost a typical family an extra £630 per year and a host of other taxes including airline tax, dog tax and water tax.

A vote for the Liberal Democrats is a vote for higher taxes.

Robert Key Says
Conservatives will get value for money by spending on what matters to the majority of people and cutting back on the rest.

We will protect the budgets of key public services. Between 2005-6 and 2007-8, spending on the NHS will rise by 21 per cent, the budget for schools will rise by 13 per cent, transport by 10 per cent and international aid by 18 per cent.

We will spend more than Labour on the police, pensions and the nation’s defences, with spending in those areas growing by 12 per cent, 12 per cent and 9 per cent between 2005-6 and 2007-8.

We will give patients a choice of clean hospitals. We will give parents a choice of well disciplined schools. We will get crime under control.

But we have to take tough decisions. Under a Conservative Government:

  • 168 public bodies will disappear;
  • 235,000 bureaucrat’s jobs will go;
  • Labour’s Regional Assemblies will go;
  • Labour’s new Supreme Court will be scrapped;
  • there will be no Small Business Service; and
  • there will be no New Deal.

These decisions are tough – but they are right. This spending is wasteful and unnecessary. It is not delivering value for taxpayers’ money.

Our value for money review of Government has identified £35 billion of savings. £23 billion will be re-spent on priority public services, to help implement our radical Right to Choose reforms in the NHS and schools so that we can provide cleaner hospitals and discipline in schools; and fund more police on the streets.

The review also identified £12 billion of net savings in non-priority areas. £8 billion of savings held back to reduce national debt; and £4 billion of savings will be used to fund tax cuts in our first budget within a month of the election.

These are not vague aspirations. These are absolute commitments.

Better public services, better value for money, lower taxes.

That is the Conservative agenda for Britain’s forgotten majority.

 

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