The prime minister yesterday rubbished PwCs estimates that the increase runs into ‘billions’ and defended the government’s record on tax rises.
William Hague used the PwC estimates to attack the government’s record and asked the Prime Minister if he trusted figures produced by Gordon Brown, Chancellor of the Exchequer.
Blair replied: ‘Yes, I am aware of the PricewaterhouseCoopers letter and its concerns. We believe them to be mistaken and we have asked PwC to discuss them with us.
‘I believe that its assessment is based on a misunderstanding of the tax position.’
Business taxes has moved to centre stage in the debate over the Budget in which the chancellor announced changes to Double Tax Relief – a change which many commentators are estimating will cost UK multi nationals £1bn or £2bn in extra tax each. The Treasury calculates the yield at £100m.PwC’s estimate, however, is that it is around at around £8bn to £10bn.
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