The two Conservative Prospective Parliamentary Candidates for Norwich have accused the Chancellor of producing a “tax con which will lead to a borrowing bombshell” and have called on the Government for more time to debate the proposals contained in the Pre-Budget Report.
Antony Little, who is the Conservatives’ spokesman for Norwich South, and Chloe Smith, Tory PPC for Norwich North, made their comments after the Chancellor delivered his statement to the House of Commons yesterday afternoon.
Cllr Little said: “This is a massive Tax Bombshell Budget aimed at the pockets of Britain’s families. With one hand the Chancellor is giving us a temporary £20 billion tax cut but will still take almost £40 billion in permanent tax rises. Each household will be hit by another £1,500.
“There will be £20 billion on National Insurance, £10 billion on income tax, £5 billion on alcohol and cigarettes and £2 billion on pensions. By 2012/13 anyone earning over £20,000 will be paying more tax.
“Those losing out from Labour’s Tax Bombshell Budget will include most teachers, journalists, social workers, police officers, paramedics, firemen, office managers and professionals
“In one move, the Chancellor has managed to double the national debt to more than £1 trillion and will be borrowing more than at any time in our history. Britain will be paying off Gordon Brown’s debts for many decades to come.”
Miss Smith said: “It’s what the Chancellor didn’t say that’s really vital. Borrowing next year will be the highest as a proportion of GDP on record, as will national debt. In fact the Government is borrowing more than the entire debt inherited from all previous Governments put together.
“Even worse is an extra £100 billion buried in the small print as tax receipts over the next Parliament. The Chancellor has also cut the NHS budget by £1.4 billion in 2010/11.
“This Pre-Budget statement is also bad news for business. Corporation tax rises, business rate relief and income shifting tax rises have not been cancelled but are actually deferred by 12 months. There is a £2.8 billion tax rise on businesses through NIC tax rises and no costing help for businesses. Furthermore, the much-publicised temporary VAT cut of 2.5% will cost firms £300 million to implement.”
“The Government’s growth forecasts are much more optimistic than those of independent forecasters. If the recession is in line with external forecasters, and therefore worse than Treasury forecasts, borrowing will be catastrophically higher.”
Both Cllr Little and Miss Smith have also called for more time to debate the wide-ranging measures announced in the Chancellor’s speech.
Miss Smith said: “This has been the most widely-anticipated and important Pre-Budget statement for many years. It is astonishing that no time has been allocated to debate these measures in full because the House of Commons is shutting shop for a week.
“This is an unacceptable state of affairs. The Government should hold a debate in Parliament before the House rises.”
Cllr Little added: “However the Prime Minister decides to present it, the Pre-Budget Report is still a Christmas tax bombshell and he is trying to secure his future by mortgaging yours. The public are not fools. They will spot the difference between a tax cut and tax con.”