Case for tax cuts

THE call by Liam Fox, the former Defence Secretary, for a five-year spending freeze in order to fund a radical programme of tax cuts certainly chimes with those increasingly restless Tories who believe that David Cameron’s party is not doing enough to support the nation’s strivers.

The problem is that the Conservatives did not win a majority at the last election and that small changes to the gargantuan welfare budget – which stands at £200bn a year in spite of recent cuts – prompt howls of protest from the Lib Dems, outrage from an opportunistic Labour Party and derision from the Church of England.

That said, there is growing evidence to suggest that a culture of high taxes are suffocating Britain’s recovery prospects and that the Government needs to do far more to reward those who work hard rather than punish their endeavours.

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This is not a “jihad” against public spending, the preposterous claim made by a rattled Vince Cable, the Business Secretary. It’s an acknowledgement that raising taxes is not the solution to the country’s financial crisis.