LABOUR SHADOW chancellor Ed Balls has said the government should cut tax in next month’s Budget in order to boost growth.
Mr Balls’ ideas include a VAT cut, a 3p income tax cut for a year, bringing forward the planned personal allowance rise to £10,000 and higher tax credits, the BBC reported.
No tax cut could mean “a permanent dent in our nation’s prosperity”, he said.
The Conservatives said excessive borrowing and debt under Labour had led to the current financial mess.
Mr Balls told BBC One’s The Andrew Marr Show that the current austerity measures were “self defeating” and had left Chancellor George Osborne claiming he was “trapped by the credit rating agencies”.
The shadow chancellor said he favoured a cut in VAT – which is a sales tax rather than a tax on income – because it would be the “fastest and fairest” way of boosting the economy.
“We’ve got to get growth back in the economy,” he told the programme.
HMRC has outlined a change in VAT policy to the treatment of dwellings that have been formed from either the construction of new buildings, or from the conversion of non-residential buildings
Let us hope that valuable asset protection vehicles are not made prohibitively burdensome or abolished in the desire to “simplify” IHT
The government is pressing ahead with changes to the way it taxes individuals with a foreign domicile
I will feel slightly awkward when I write to the client who is about to receive a large invoice from the PAYE expert, offering him the fee protection going forward